Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that Indonesia's Manufacturing Purchasing Managers' Index (PMI) in August 2022, which reached 51.7, strengthened from 51.3 in the previous month, indicating that the national industry is increasingly conducive. “The increase in the Manufacturing PMI index was driven by increased sales from domestic demand. This is a sign that the economic recovery efforts from the pandemic have shown their impact," said Minister of Industry Agus Gumiwang Kartasasmita in a statement in Jakarta, Thursday. The operating conditions of the country's manufacturing sector, according to him, have continued to improve in the last 12 months. Indonesia's Manufacturing PMI continues to show improvement, amid the decline in the index in other Asian countries such as South Korea (49.8 in July 2022 to 47.6) and Japan (52.1 in July 2022 to 51.5). S&P Global analysis shows there has been a fairly strong improvement in the manufacturing sector in the past four months, supported by production rising for the third straight month, and being the fastest combined in seven months. Then there was an increase in demand and an expansion of new orders at the fastest pace in six months. Inflationary pressures in the manufacturing sector also eased, marked by lower input and output prices. The increase in the Indonesian Manufacturing PMI index also contributed to the increase in job creation in August. With the increase in the volume of new work, there was an increase in the number of unfinished businesses in August. The report noted that overall business sentiment in Indonesia's manufacturing sector remained positive amid hopes for a sustained recovery in demand. In response to this, the Minister of Industry again reminded the need to anticipate the need for the Russia-Ukraine geopolitical condition that triggers the food crisis and energy crisis. These two things affect the supply of commodities for the manufacturing sector.“The manufacturing industry sector continues to experience an increase in investment. I am optimistic that this trend will continue until the end of the year. Therefore, we are trying to overcome the existing investment barriers," said the Minister of Industry.
Furthermore, the Ministry of Industry (Kemenperin) is determined to continue to spur domestic consumption by ensuring that domestic industrial products are absorbed as much as possible, one of which is government spending through the Program for Increasing the Use of Domestic Products (P3DN). "I advise industry players to continue to increase their capacity and utilization, make adjustments, and ensure industrial companies take advantage of this policy," said the Minister of Industry. S&P Global Market Intelligence economist Laura Denman said the clearer growth in output and new total demand indicated the health of the economy going forward. The company also cited stronger demand conditions. Price pressure due to inflation is also expected to continue to decrease due to the declining impact of COVID-19. However, overall business confidence declined from July's position.
