Indonesia's PMI was higher than several other Asian countries, including China (50) and Japan (51.5), and was the highest among ASEAN nations such as Singapore (52.1), Malaysia (48.1), Thailand (48.9), the Philippines (50.9), and Vietnam (40.2), Industry Minister Agus Gumiwang Kartasasmita informed in a written statement issued in Jakarta on Friday.
"Last month, I had said that although there was a decline in the manufacturing PMI in July-August, I believed we could rebound quickly. Thank God, in September, it has been expansive again," he remarked.
Given how the manufacturing sector has expanded, the Industry Minister said he is sure that the industrial growth target of 5 percent will be met in 2022.
"Therefore, we are determined to continue to support the industrial sector through a conducive business climate," Kartasasmita said.
The results of the HIS Market survey show that the increase in manufacturing PMI in Indonesia has been due to the leeway given during social restrictions in Indonesia, he noted. The leeway was given due to the declining number of COVID-19 cases, he added.
Related news: Indonesia's July Manufacturing PMI index reaches 46.9
In September 2021, both output and new orders increased after two months of sharp declines, the minister disclosed.
Demand for the manufacturing industry returned after the public health situation improved and restrictions on movement were relaxed so as to support economic activity, he noted.
According to Kartasasmita, the decline in COVID-19 cases, which, in turn, supported the relaxation of community activity restrictions, was an indication that strict health protocols could go hand in hand with economic activities.
The Industry Ministry has been constantly refining policies to ensure the health protocols are applied in the operation and mobility of industrial activities, he said. This is one of the government's efforts to stem the spread of COVID-19, he added.
"With this policy, all industrial sector activities can run well and remain monitored. Thus, the industrial sector can be more optimal in its role as a driving force in efforts to restore the national economy," he added.
This shows that there are no other obstacles to industrial activity in Indonesia, other than the condition of public health, he said.
Related news: Increased PMI demonstrates government's policy on target: Minister
To maintain this condition, Kartasasmita urged industry players to consistently follow regulations related to the Operational Permit and Mobility of Industrial Activities (IOMKI), in accordance with the Circular Letter of the Minister of Industry Number 5 of 2021 concerning Amendments to SE No. 3 of 2021 about Operations and Mobility During the COVID-19 Emergency Period.
"This latest circular has regulated the use of the PeduliLindungi application in companies so that the activities and conditions of employees are well-monitored. We also continue to encourage the acceleration of vaccination in the industry, which is targeted to reach five million people," he informed.
Meanwhile, Jingyi Pan, economics associate director at IHS Markit, said the manufacturing sector in Indonesia showed an increase in performance in September 2021 and indicated a possibility for further expansion.
Industry players in Indonesia remain optimistic about production for the next 12 months, with the expectation that the COVID-19 situation will improve, Pan added.
Related news: PMI slumps as manufacturing industry vastly dependent on consumption
Related news: PMI increases, minister upbeat on industry investment growth
Translator: Risbiani F, Mecca Yumna
Editor: Suharto
Copyright © ANTARA 2021
