Based on S&P Global data, the Purchasing Managers Index (PMI) for Indonesian manufacturers was recorded at 50.9 points in December 2022. This figure increased 1.2% compared to the previous month which was 50.3 points. However, Indonesia's manufacturing PMI in December 2022 was still 4.9% lower than a year earlier. Indonesia's manufacturing PMI score was recorded at 53.5 points in December 2021. Manufacturing production experienced a faster expansion in December 2022. This was driven by an increase in demand for production goods. However, this increase was mainly centered on the domestic market. This was caused by foreign demand which fell again, burdened by the weakening global economic conditions. In the midst of an expansion in demand, the backlog of work has accumulated at a slightly faster pace than in November 2022. However, supply constraints are still occurring due to the decline in supplier performance. This is partly caused by bad weather and supply disruptions. To handle the growth in existing workloads and new orders, Indonesian manufacturers expanded their workloads for the sixth consecutive month in December 2022. Companies also continued to increase their purchasing activity, causing an increase in pre-production inventories. Furthermore, stocks of finished goods also rose after falling three months in a row. This relates to a larger increase in the flow of new requests and the projected increase in demand in the future. Despite improving demand conditions, price pressures eased by the end of 2022. Input cost inflation fell below the long-term average in December 2022, although still large overall. Overall sentiment remained positive in December 2022, with manufacturers fully hopeful towards 2023. However, the level of optimism fell to its lowest since May 2020 amid concerns over deteriorating global economic conditions.

Source: https://dataindonesia.id/sector-riil/detail/kinerja-industri-manufaktur-ri-tetap-ekspansif-sepanjang-2022