Indonesia's manufacturing sector continues to expand and keeps on strengthening.
Jakarta (ANTARA) - Indonesia's Manufacturing Purchasing Managers' Index (PMI), clocked at an expansive level of 51.7 in August 2022, is indicative of a more stable economic recovery, according to the Finance Ministry's Fiscal Policy Agency (BKF).

The figure increased from the index of the previous month of 51.3. Hence, Indonesia’s manufacturing PMI in August 2022 became the highest in the last four months.

“Indonesia's manufacturing sector continues to expand and keeps on strengthening. It is reflected in the increase in Indonesia's manufacturing PMI that reached 51.7 in August 2022," Head of BKF Febrio Kacaribu remarked here on Friday.

He noted that growth was encouraged by controlled inflation as well as an increase in new manufacturing demand and output.

Moreover, the increase in new manufacturing demand and output was the fastest growth rate recorded in the last six months owing to strong demand and the overall market recovery, thereby indicating that recovery of the consumption sector also continued to strengthen.

Another sign of strengthening demand is the increase in post-production inventories as well as purchasing activities that continued to increase for the seventh month in a row.

In addition, the recovery of the manufacturing sector was indicated by the increasing workforce absorption as well as the decreasing input prices and output costs.

Hence, overall, Indonesia's manufacturing sector remains positive.

The head of BKF emphasized that the government will continue to strive to maintain this momentum, so that the manufacturing sector will remain stable to be able to support sustainability of economic recovery.

The strengthening trend of manufacturing PMI was also experienced by several ASEAN countries, such as Thailand, which experienced an increase, from 52.4 in July 2022 to 53.7 in August 2022 as well as the Philippines whose PMI rose, from 50.8 in July 2022 to 51.2 in August 2022.

Meanwhile, the manufacturing PMI of Malaysia, Japan, and South Korea declined slightly to 50.3, 51.5, and 47.6 in August 2022, from 50.6, 52.1, and 49.8 in July 2022 respectively.

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Translator: Astrid Habibah, Uyu Liman
Editor: Rahmad Nasution
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