JAKARTA - A number of non-oil and gas processing industries in the country are still expanding their business, which is reflected in the achievement of Indonesia's manufacturing Purchasing Managers Index (PMI) in June which recorded at 53.5. Based on the survey results released by IHS Markit, a PMI above 50 indicates that the manufacturing industry is considered expansive.
“We need to be grateful that the manufacturing industry sector is still expansive. This means that there is still business enthusiasm amidst the impact of the increase in Covid-19 cases," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Thursday (1/7).
Agus remains optimistic that the national economy will grow positively in the second quarter of this year. This belief is based on a number of indicators, including the performance of the manufacturing sector. “In the last eight months, Indonesia's manufacturing PMI has continued to be above 50. This means that the domestic manufacturing industry is at an expansive, even aggressive, level. Industrial growth is expected to reach a positive point in the second quarter of this year," he explained.
The brilliant performance of the manufacturing industry sector in the country, for example, can be seen in the export value of the manufacturing industry which was recorded at USD66.70 billion in January-May 2021, up 30.53% compared to the same period in 2020 of USD51.10 billion. From the achievement of USD66.70 billion, the processing industry contributed the highest, which was 79.42% of the total national exports which stood at USD83.99 billion.
Referring to IHS Markit data, Indonesia's manufacturing PMI in June was still higher than the ASEAN manufacturing PMI which was at the level of 49.0. In addition, Indonesian manufacturing PMI also outperformed the Philippines manufacturing PMI (50.8), Thailand (49.5), Singapore (46.5), Vietnam (44.1), and Malaysia (39.9). In fact, Indonesia's manufacturing PMI is above the manufacturing PMI of China (51.3), Japan (52.4), and India (50.8). (LM)