JAKARTA - The manufacturing industry sector in Indonesia continues to increase its productivity in an effort to meet the needs of the domestic and export markets. This can be seen from the S&P Global report, which showed that Indonesia's Manufacturing Purchasing Managers' Index (PMI) in March was at 51.3, an increase compared to the previous month at 51.2.
A PMI rating above 50 indicates that the industrial sector is in an expansionary phase. According to S&P Global records, the increase in Indonesia's Manufacturing PMI in the third month was due to increasing production and new orders.
In addition, there was an improvement in business conditions in all manufacturing sectors in Indonesia for the seventh month in a row. Indonesia's Manufacturing PMI in March was able to exceed the Manufacturing PMI of South Korea (51.2), Malaysia (49.6), China (48.1), Russia (44.1), and above the ASEAN average (50.8) .
"We continue to maintain and encourage the industrial sector to produce well in meeting the basic needs of the community, especially during the month of Ramadan and Eid where demand will increase," said Ministry of Industry spokesman Febri Hendri Antoni Arif in Jakarta, Friday (1/4).
Responding to the results of the Indonesian Manufacturing PMI in March, Jingyi Pan as Economics Associate Director of IHS Markit said that although the increase in output and new orders appeared to be slowing due to the lingering impact of Covid-19, business confidence has increased sharply among Indonesian manufacturing companies amid the wave the latest virus that is starting to subside. (LM)