Indonesia’s Manufacturing Purchasing Managers Index (PMI) was recorded at 53.7 in September 2022, up from August 2022 which reached 51.7. S&P Global survey results show that Indonesia’s manufacturing sector expansion rate during this period was the fastest in eight months and solid overall. In general, the Manufacturing PMI of Southeast Asian countries showed improvement. Indonesia's Manufacturing PMI in September 2022 surpassed the World Manufacturing PMI (50.3), ASEAN (53.5), Malaysia (49.1), Vietnam (52.5), and the Philippines (52.9). Indonesia's Manufacturing PMI is also higher than China (48.1), Japan (50.8), and South Korea (47.6). "The increase in Indonesia's Manufacturing PMI this time is also due to the ability of the industry. These include efficiency due to the use of technology, increased capacity of industrial human resources, and easy access to raw materials," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Monday (3/10).
According to Agus, Indonesia's Manufacturing PMI which increased again in September 2022 shows the performance of the industrial sector is getting better and shows stable development. In this case, production activity plays an important role in increasing the index, which is supported by increased demand, especially from within the country, he said. Agus added that the resilience of the manufacturing industry has strengthened as evidenced by the PMI's performance rising to 53.7 in September 2022. The well-maintained supply chain in the industrial sector certainly supports an increase in productivity that can be seen in the electronics industry, the non-metallic mineral industry, as well as the machinery and equipment industry which is not included in the others. In the electronics industry, the increase mainly occurred in the production of laptop products to meet the demand for realization of government spending and the central government, and for the non-metallic mineral industry, the increase can be seen in cement, ceramic, and glass products. This is influenced by the increasing demand for infrastructure development needs by the government, as well as property by developers. "In addition, there is also government spending that is distributed to the community in the form of social assistance," said Agus. Meanwhile, S&P Global saw a decline in foreign demand for the Indonesian companies surveyed. Related to this, Agus believes that the decline in exports occurred because destination countries such as China, the United States, and European countries experienced inflation. This resulted in pressure on the exports of several Indonesian manufactured products. Rising demand in September 2022 also supported the growth of other indices, such as employment and purchasing activity. This condition was also helped by lower inflation and output costs.
