Indonesia Records Higher Level of Manufacturing PMI
Indonesia has reported Manufacturing Purchasing Managers’ Index in December 2020 at 51.3, higher than that in the previous month at 50.6.
“This is an extraordinary achievement. I’d like to express my appreciation to industry players who have making their best efforts to capitalize on the existing resources amid the existing limitations. It also shows that Ministry of Industry’s policies are able to support the achievement,” Minister of Industry Agus Gumiwang Kartasasmita said in Jakarta, Monday (04/01).
According to Agus, South East Asia’s largest economy has a strong potential to enter economic recovery stage.
“The Government is optimistic that the entire series of strategies and policies that we have implemented will pave way for opportunities for economic recovery in the future,” he said.
Agus went on to say that indicators of recovery in 2021 can be seen from national economic development in 2020, adding that Indonesia’s economy reached its lowest growth in the second quarter of 2020 due to the COVID-19 pandemic.
In the third quarter of 2020, however, the economic growth began to rebound albeit still recording minus 3.4 percent (year on year).
“We fare better than some other countries such as Germany, Singapore, the Philippines, Spain, and Mexico, all of which recorded minus a 4 percent growth on average,” Agus said, adding that other supporting macroeconomic indicators include improving domestic demand and consumer confidence.
The Minister also pointed out that there are three sub-sectors projected to be able to record good growth acceleration in 2021, namely food, beverage, as well as paper and paper goods industries.
The Government, Agus said, will also pay special attention to several manufacturing sectors, including pharmaceutical industry, medicine products, chemicals, traditional medicines, chemical goods, base metal, and food sectors.
This year, he added, industrial growth is expected to return to a positive track and all manufacturing sub-sectors are also projected to record growth again.
“Assuming the pandemic can be controlled and economic activity can recover, we estimate that the manufacturing industry next year will grow by 3.95 percent,” Agus stated.
For the record, the prediction is consistent with investment in the non-oil and gas processing industry, which is still growing positively.
Last year, investment value of non-oil and gas processing industry was estimated to reach Rp265.28 trillion or 24.48 percent higher than the investment realization in 2019 of Rp213.11 trillion. This year, investment is projected to increase by 21.97 percent to Rp323.56 trillion. (PR OF MINISTRY OF INDUSTRY/UN) (RI/EP)