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Indonesia's manufacturing policy is in a right line with the Purchasing Managers' Manufacturing Index Rises

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London-based global information provider, IHS Markit has recently released a report that stated Indonesian manufacturing Purchasing Manager’s Index (PMI) of June 2020 was 39.1. The index increases compared to 28.6 level in the previous month. PMI uses 50 as the threshold.

Indonesian Industry Ministry Agus Gumiwang Kartasamita as reported on Industry Ministry’s official page on Saturday (July4) stated, Indonesian manufacturing PMI increased to 39.1 in June 2020 indicated that the national manufacturing industry is starting to recover. He said the index increase also encourages trust in the manufacturing industry sector towards various strategic measures done by the government in boosting the economy. This showed that the government's policy in the new normal has been right.

Based on data released by IHS Markit, the future output index, benchmark, and business sentiments have spiked into 73 percent in June. According to Agus Gumiwang, this was the highest in the last five months and this achievement became Indonesian government’s capital to keep issuing policies that can keep encouraging activities of manufacturing in the new normal.

Nevertheless, the Industry Minister affirmed the national economic growth anticipation in the third and fourth quarter of 2020, because that period decides national economic performance in 2021.

To maintain manufacturing performance, the Industry Ministry supported the industry to keep operating by issuing Industrial Operational and Mobility Permit (IOMKI) that still follows health protocol.

Until now, Industry Ministry has issued more than 17 thousand Industrial Operational and Mobility Permits. With industry operational, around five million workers can stay in their job.

Besides focusing on industry sector recovery from Covid-19 pandemic through various stimulus, the government had also prepared various incentives for investors who will invest in Indonesia, including super deductible tax around 300 percent for industry that develops research and development facility in Indonesia and 200 percent for industry that develops vocational education in the country.Furthermore, the government will build 27 new industrial areas across Indonesia until 2024.

 

Read 717 times Last modified on Monday, 13 July 2020 18:44