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Indonesia's Manufacturing PMI hits record high

02 June 2021 20:10

JAKARTA - The rate of expansion in Indonesia's manufacturing sector reached a new record in May 2021. This is reflected in the record of Indonesia's Manufacturing Purchasing Managers' Index (PMI), which broke 55.3 level in May, as released by IHS Markit. This achievement increased significantly compared to April which was in the position of 54.6. A PMI reading above 50 indicates that the industrial sector is expanding.

This position of expansion was marked by new demand, output, and purchases rising at a rate unprecedented in the survey's 10-year history. In fact, the employment aspect has returned to growth after 14 months to meet the growing demand for operational capacity.

"Thank Gpd, we are very grateful and grateful to the industry players in the country who are still aggressively running their business amidst the impact of the current Covid-19 pandemic. The government is determined to continue to create a conducive business climate through various strategic policies," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Wednesday (2/6).

Indonesia's manufacturing PMI in the fifth month of this year is above the ASEAN manufacturing PMI at 51.8. At this regional level, Indonesia's manufacturing PMI outperformed Vietnam's (53.1), Malaysia (51.3), Singapore (51.7), the Philippines (49.9), and Thailand (47.8). In fact, Indonesia's manufacturing PMI is also ahead of the manufacturing PMI of South Korea (53.7), Japan (53.0), China (52.0), and India (50.8).

According to IHS Markit, Indonesia's Manufacturing PMI at 55.3 in May 2021 is the highest for three months in a row. This also indicates that business conditions have strengthened in the past seven months. The two largest components of the headline index, namely output and new demand, were the main contributors to Indonesia's record manufacturing PMI increase in May. (LM)

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