Indonesia’s Manufacturing PMI Outperforms China, S. Korea
President Jokowi inaugurates the 2020 export launching to the global market, Friday (12/04), through video conference from the Bogor Presidential Palace, West Java. (Photo by: Presidential Secretariat/ Rusman)
Indonesia’s non-oil and gas manufacturing industry shows a positive growth in 2022.
Based on data provided by IHS Markit, Indonesia Purchasing Managers’ Index (PMI) in January was at 53.7, indicating an expansion of manufacturing sector.
The figure also increased compared to that of December last year and outperformed ASEAN’s at 53.5 and some other countries such as Malaysia (52.8), the Philippines (50), South Korea (51.9), Russia (51.8), and China (49.1).
Minister of Industry Agus Gumiwang Kartasasmita Wednesday (02/02) expressed optimism that Indonesia’s economic condition will continue to improve thanks to the Government’s commitment to create a favorable business climate amidst COVID-19 third wave.
“A number of strategic policies have been implemented by the Government to speed up national economic recovery and to stimulate industrial sector to resume production and compete,” he said.
According to the Minister, manufacturing industry plays a crucial role for the national economy as it contributed to some indicators of macro sector, namely investment realization, export realization, and increase in manpower.
In terms of export, manufacturing industry contributed US$117.10 billion or 76.49 percent out of the total national export value in 2021. The figure exceeded the total export value from manufacturing sector in 2020 which stood at US$131 billion and the total export value in 2019 which stood at US$127.38 billion.
In addition, investment realization in manufacturing sector in 2021 is recorded at Rp325.4 trillion, increasing by 19.24 percent compared to that of last year.
Manufacturing industry has also increased labor absorption in that sector.
To date, there are additional of 1.2 million workers during 2021, bringing up the number of workers in manufacturing sector to 18.64 million. The number of workers is projected to increase as demand and sales continue to grow which made significant increase in manufacturing output products.
In general, Indonesia’s manufacturing industry saw a positive growth that boosts confidence of the industry that the economy will rebound. (Ministry of Industry PR/UN) (RAS/EP)
