JAKARTA - The activity of the industrial sector in the country is still showing a level of expansion. This is indicated by S&P Global data which shows that the Indonesian Manufacturing Purchasing Managers' Index (PMI) was at the level of 50.8 in May. Despite experiencing a slowdown compared to the previous month, business sentiment regarding the 12-month output forecast remained positive.
"This expansion stage illustrates that for nine months in a row business conditions have improved in all of Indonesia's manufacturing sectors," said Industry Ministry spokesman Febri Hendri Antoni Arif in Jakarta, Saturday (4/6).
Febri explained that the slowdown in Indonesia's Manufacturing PMI in May was mainly due to supply constraints. "The existence of the long Eid holiday in the first week of May 2022, for example, is one of the factors that disrupts the supply chain of the industrial sector," he said.
S&P Global also reported that factory activity in Asia was slowing due to strict Covid-19 restrictions in China, hampering supply and demand chains. In fact, coupled with the impact of the Russo-Ukrainian war which made the market worry.
In the first quarter of 2022, the non-oil and gas processing industry was able to record growth of 5.47% or higher than the national economic growth which reached 5.01%. The performance of the manufacturing sector also increased significantly compared to the same period last year which experienced a contraction of 0.71%.
In addition, the realization of investment in the industrial sector in the first quarter of 2022 rose 17% (y-o-y). The investment performance of the manufacturing sector during January-March 2022 reached Rp103.5 trillion. This amount gave a significant contribution of 36.7% to the total value of investment in the country in the first quarter of 2022, which reached IDR 282.4 trillion. (LM)