Indonesia’s Manufacturing PMI Moves to 52.2, Exceeds Thailand, Vietnam
Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) in January climbed to 52.2 from the previous 51.3, marking a recovery in the industrial sector from the impact of COVID-19 pandemic.
The country’s PMI is also higher than that of the neighboring Vietnam (51.2), Thailand (49), Malaysia (48.9), ASEAN (51.4), and China (51.3).
Indonesia’s improved PMI also indicated expansion of manufacturing sector and a positive growth in processing industry of non-oil and gas in 2021.
In this regard, Minister of Industry Agus Gumiwang Kartasasmita affirmed the Government’s commitment in creating a favorable business environment and accelerating national economic recovery programs.
“I thank all business players remain optimistic in these difficult times. The Government will maintain this positive trend,” he said.
During the last four months, Indonesia’s Manufacturing PMI has gradually increased. In fact, the increase in January 2021 is recorded as the country’s fastest pace of expansion in the last 6.5 month and one of the highest since the survey began in April 2011, indicating that Indonesia’s economy in the future will make quick rebound.
Echoing a similar sentiment, Economic Director at HIS Markit Andrew Harker said that Indonesia’s manufacturing sector remained on the path to recovery at the start of 2021 with growth of output and new orders among the best in a decade.
These trends have fueled a boost of confidence, which is the highest in four years, he added.
Indonesia’s manufacturing industry has made the largest contribution to the national export value, amounting US$131.13 billion in 2020, or increased by 2.95 percent compared to that of last year.
“The industry contributed 80.30 percent of the overall national export value s at US$163.30 billion in 2020. Thus, manufacturing industry posted a trade surplus of US$14.17 trillion,” Andrew said, adding that investment in industrial sector increased by 26 percent from Rp216 trillion in 2019 to Rp272.9 trillion in 2020.
In the meantime, according to the Investment Coordinating Board (BKPM), industrial sector contributed 33 percent of the total national investment in 2020 or around Rp272.9 trillion of the total of Rp826.3 trillion.
With that contribution, national investment realization has successfully exceeded the target of Rp817.2 trillion.
“It is such a remarkable achievement given the pandemic,”Andrew remarked. (MINISTRY OF INDUSTRY PR/AIT/UN) (RAS/EP)