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Indonesia's Manufacturing Sector Moves Further into Expansionary Phase: BI

Wahyu Dwi Anggoro - 14 April 2022 12:33 WIB
Indonesias Manufacturing Sector Moves Further into Expansionary Phase: BI
Jakarta city center (Photo: Medcom.id)
Jakarta: The latest Prompt Manufacturing Index-Bank Indonesia (PMI-BI) reading moves further into an expansionary phase (>50) in the first quarter of 2022 at 51.77% from 50.17% in the fourth quarter of 2021. 

"All components contributed to the improvement, led by Order Volume, Production Volume, and Inventory," BI Communication Department Head Erwin Haryono said in a press release on Thursday.
Furthermore, most subsectors recorded gains, with the highest index readings affecting Paper and Printing (56.36%), Food, Beverages and Tobacco (53.47%) as well as Textiles, Leather and Footwear (53.29%). 

The current PMI-BI trend is consistent with the latest findings of the Manufacturing sector of the Business Survey (SKDU) published by Indonesia's central bank, where the corresponding weighted net balance (WNB) improved to 0.84%.

Second Quarter

Survey respondents predict the manufacturing industry gains to endure in the second quarter of 2022, with the PMI-BI improving to 56.06% on the back of all components, especially Production Volume, followed by Order Volume, Inventory and Labour. 

In addition, respondents expect most subsectors to continue gaining momentum, led by Food, Beverages and Tobacco (58.46%), Paper and Printing (56.70%) as well as Textiles, Leather and Footwear (56.29%).

(WAH)

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