Indonesia last month was 53.7, this morning, I received news in October 51.8Jakarta (ANTARA) - Indonesia's manufacturing purchasing managers' index (PMI) was recorded at 51.8 in October 2022, down from 53.7 the previous month, Minister of Industry, Agus Gumiwang Kartasasmita, said on Tuesday.
According to the minister, the decline in PMI is in line with slowing global economic conditions, with the PMI in many industrial countries also weakening.
“Indonesia last month was 53.7, this morning, I received news in October 51.8. We are still grateful that we are still expansive, and we have experienced this level of expansiveness for 14 consecutive months,” Kartasasmita said in Jakarta.
An index level above 50 indicates that the manufacturing sector in Indonesia is still relatively expansive, he noted. A level below 50 would indicate that the manufacturing industry is depressed or contracting.
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Despite the decline, Indonesia's achievement is still much better than global industrial countries and ASEAN, the minister said.
"Big countries like China, Europe, South Korea, and Taiwan now have PMIs below 50," he pointed out.
As per Bloomberg data, Taiwan's S&P Global Manufacturing PMI has slid to 41.5 from 42.2. Similarly, Japan's manufacturing PMI has weakened to 50.7 from 50.8. Meanwhile, South Korea's PMI has risen to 48.2 from 47.3, but is still in contraction territory.
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Meanwhile, Thailand's manufacturing activity has fallen sharply to 51.6 from 55.7. The same has been the case with China and Australia.
According to Kartasasmita, to keep the growth of the manufacturing sector expansive, the government is seeking to continue to maintain industrial demand.
"The government will have to help it with various policies, starting from incentives and stimulus. Later we will study it, we will review it, to help the industry not to experience a slowdown in its manufacturing industry," he added.
He is targeting to maintain manufacturing PMI above the level of 51 till the end of this year.
"We hope that it will remain healthy, any point above 51. (Although) above 50 is still expansive, but we are pushing or trying to get above 51," the minister said.
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Translator: Ade J, Azis Kurmala
Editor: Fardah Assegaf
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