Indonesia’s Manufacturing PMI Hits Record High; Tops ASEAN, South Korea

Indonesia’s manufacturing expansion rate has hit a new record as reflected in Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) that stood at 55.3 in May this year.

The figure released by HIS Markit grew significantly compared to that in April at 54.6. PMI above 50 shows that the industry sector is expansive.

The expansive position is indicated by new demands, outputs, and the highest purchase rate increase in the last ten years of survey history.

In fact, the workforce aspect has grown again after 14 months to fulfill the needs for increasing operational capacity.

“Thank God, we are very grateful to and really appreciate industry players across the country who are still aggressive in running their business in the throes of the COVID-19 pandemic. The Government aims to continue creating a favorable business climate through a host of strategic policies,” Minister of Industry Agus Gumiwang Kartasasmita said in Jakarta, Wednesday (02/06).

For the record, Indonesia’s Manufacturing PMI in May was above those of ASEAN (51.8), Vietnam (53.1), Malaysia (51.3), Singapore (51.7), the Philippines (49.9), and Thailand (47.8).

Indonesia’s Manufacturing PMI also topped those of South Korea (53.7), Japan (53.0), China (52.0), and India (50.8).

The Minister also pointed out that the growth of Indonesia’s Manufacturing PMI marks the revival of the country’s industry sector, which will propel the national economy.

“Not only did it break another record, but also we are optimistic that Indonesia’s Manufacturing PMI also shows that our industrial growth in the second quarter of 2021 will remain positive,” he said, adding that the achievement of the industry sector is the fruit of policies that have been on the right track.

“The Government continues to align policy instruments to support industry players to run their business optimally,” he said.

In addition, the policies on incentives that the Government has implemented do not only facilitate business players, but also draw public demands so products of the national industry have a market again. For example, a fiscal incentive in the form of relaxation of luxury sales tax borne by the Government has managed to increase sales of four-wheeled vehicles by 150 percent.

“The Government continues to maintain this good momentum so that Indonesia’s Manufacturing PMI remains above 50, which suggests that our manufacturing industry is expansive. Therefore, we will continue to align and reinforce policies, especially regarding the period of raw and auxiliary material shipment as indicated by HIS Markit,” the Minister remarked. (PR of Ministry of Industry/UN) (DH/EP)

The official website of Ministry of Industry can be accessed through this link.