Home MONEY & FINANCE Indonesia’s Manufacturing Index Shows Expansion

Indonesia’s Manufacturing Index Shows Expansion

manufacturing sector

During the second quarter of 2022, Indonesia’s manufacturing industry managed to show a pretty good performance amid the global inflation phenomenon. Figures obtained in this quarter rose 1.84% compared to the previous quarter.

The latest Bank Indonesia (BI) Prompt Manufacturing Index (PMI) data shows indications of an increase in the manufacturing industry which is above level 50 or the expansion phase in the last 2 quarters of 2022.

BI noted that Indonesia’s PMI in the second quarter of 2022 was more expansive by 53.61 percent. Higher than the previous quarter, which was 51.77 percent.

Head of the BI Communications Department Erwin Haryono said the increase occurred in all components that make up the PMI-BI, with the highest index recorded in the 3 main components.

“Among other things, production volume, total order volume, and finished goods inventory volume,” Erwin said in a press release, Thursday (14/7/2022).

In the second quarter of 2022, production volume recorded an increase and was at an expansion level with an index of 57.05 percent. This figure is higher than 53.81 percent in the previous quarter.

“This increase occurred in all components that make up the PMI-BI, with the highest indexes in the components of production volume, total order volume, and finished goods inventory volume,” said Head of the BI Communications Department Erwin Haryono in an official statement, Thursday (14/7/2022).

In addition, the order volume index for input goods was recorded at 55.72 percent in the second quarter of 2022, higher than 54.33 percent in the first quarter of 2022.

The increase in the volume of orders for input goods occurred in several sub-sectors, particularly the sub-sectors of paper and printed matter, transportation equipment, machinery, and equipment, as well as iron and steel base metals.

Meanwhile, the finished goods inventory volume index showed an increase in the second quarter of 2022, which was recorded at 54.23 percent, up from 53.59 percent in the previous quarter.

An increase in the volume of finished goods inventories occurred in several sub-sectors, including iron and steel base metals, cement and non-metallic minerals, as well as fertilizers, chemicals, and rubber products.

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