VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesian manufacturing Purchasing Managers' Index (PMI) released by IHS Markit reached 54.6 in April 2021. It rose significantly compared to March with 53.2. This index showed that the industry sector is expanding. Minister of Industry, Agus Gumiwang Kartasasmita in a written statement on Monday (3/5) said that the non-oil and gas processing industry sector is still the driver of the national economy. Therefore, it requires more attention to increase its performance.

Minister Agus Gumiwang further stated that for two consecutive months, Indonesian manufacturing PMI broke the highest record. In addition, the business condition has strengthened over the the last six months and the industry sector has expanded its business. 

According to Minister Agus Gumiwang, Indonesian industry players rose again. It is because in April last year, the PMI fell to the lowest point namely 27.5.0

Indonesian manufacturing PMI in the expansive level indicates that the economy is improving further. This trend also shows the trust of the business and industry sector towards government policy that was seen on the track. Thereby, Minister Agus Gumiwang thanked the industry players who keenly kept their business going. He also perceived that this will bring a double and wide effect for the economy, from employment and foreign exchange earnings.

Responding to the Indonesian manufacturing PMI in April, Economics Director of IHS, Markit Andrew Harker said that their company recorded the output, new demand, and purchases increasing into a whole new level in the 10-year survey period. Meanwhile, new export demand also grows after a 16-month decrease.

Also, new business also experienced substantial expansion and was the fastest since the survey began in April 2011. The company often mentioned improvement on customer demand. Moreover, total new demand was encouraged by the return of new business from abroad.

Then, there was also a record in purchasing activity because companies are responding to incoming new demands. Meanwhile, the shipping from suppliers in general did not change in April, indicating disturbance in the supply chain is decreasing.