JAKARTA - The performance of the Manufacturing Industry sector in the second quarter of 2021 has increased and is in the expansion phase. This is reflected in Bank Indonesia's Prompt Manufacturing Index (PMI-BI) which increased by 51.45%, compared to 50.01% in the first quarter of 2021 and 28.55% in the second quarter of 2020.
The increase in PMI-BI in the second quarter of 2021 is in line with the development of the Manufacturing sector activity as a result of the Business Activity Survey (SKDU) which is increasing. The increase occurred in almost all components that make up the PMI-BI, especially Production Volume and Total Order Volume which are in the expansion phase.
Bank Indonesia will continue to monitor the impact of the implementation of the Emergency Community Activity Restriction (PPKM), which is likely to affect PMI developments in the third quarter of 2021. The performance of the manufacturing sector has the potential to slow down in the third quarter of 2021 with the PMI-BI forecast for 49.89%, lower than the achievement in the previous quarter.
The decline in the PMI-BI was due to a decrease in the majority of its constituent components, particularly Production Volume, Finished Goods Inventory Volume, and Total Number of Workers who were in the contraction phase. The majority of sub-sectors are predicted to slow down, particularly the Paper and Printed Goods sub-sector, the Food, Beverage and Tobacco sub-sector, and the Transport Equipment, Machinery and Equipment sub-sector. (LM)