Purchasing Managers Index Indonesia Is on Expansion Path For 6 Months in a Row

manufacturing sector in Indonesia

Production performance of the manufacturing sector has continued to be in an expansion zone for the past 6 months. In February last year, the manufacturing sector as reflected in the Purchasing Managers Index or PMI has reached 51.2.

This data shows that the Indonesian industry is still strong during the outbreak of the Omicron variant.

“The PMI index which is still in the expansion zone reflects that the impact of the Omicron spread is relatively limited to the Indonesian economy, especially in the industrial sector compared to the previous Delta wave,” said Head of the Fiscal Policy Agency, Ministry of Finance, Febrio Kacaribu, Tuesday (1/3/2022).


Previously, the industrial sector was hit after the Manufacturing PMI touched a contractionary level of 40 at the peak of the Delta variant, last July 2021. However, at the peak of the Omicron variant, February 2022, the Indonesian industrial sector was actually able to remain at an expansive level.

Purchasing activities for raw materials or capital goods in the industrial sector remained strong amidst the spread of the Omicron variant.
However, the business world still anticipates the risk of spreading the Omicron variant.

This can be seen from the policy of the business world in determining the increase in the amount of inventory which is starting to be limited.

In addition, the dynamics of the global economy also affect the level of world demand and the risk of volatility in commodity prices, which is still relatively increasing today.

However, based on the PMI survey, business actors estimate that the impact of the risk resulting from the spread of the Omicron variant will be overcome.

Moreover, the production level of the manufacturing sector is expected to continue to increase, in line with preparations for the month of Ramadan in early April 2022.