Bank Indonesia (BI) reports a robust performance in Indonesia's manufacturing sector, with the Manufacturing Index (PMI-BI) soaring to 52.80% in the first quarter of 2024. This indicates an expansionary phase in the manufacturing industry, surpassing the previous quarter's 51.20%. According to BI's Assistant Governor, Erwin Haryono, the PMI-BI's growth is attributed to increases in several components, particularly in finished goods inventory volume. Additionally, total order volume and production volume also contribute to the sector's improved performance. Analyzing sub-sectors, most industries remain in an expansionary phase. Erwin highlights tobacco processing, textiles and apparel, and basic metals as sectors with the highest index. These findings align with the Business Activity Survey (SKDU) conducted by BI, which also indicates expansion, with a net balance value of 1.71%.
Looking ahead, BI anticipates continued expansion in Indonesia's manufacturing sector. Erwin predicts a further increase in PMI-BI to 54.31% in the second quarter of 2024. Expectations are for all components to remain in expansionary territory, with finished goods inventory volume leading the way, followed by production volume and total order volume. Erwin emphasizes that all sub-sectors are forecasted to expand, with the leather, leather goods, and footwear industry expected to lead the pack, followed by tobacco processing and machinery and equipment industries. This outlook reflects BI's confidence in the resilience and growth potential of Indonesia's manufacturing sector.
