Industry Minister Agus Gumiwang Kartasasmita stated that in order to return to the level of 51.9 in February 2020 or before the pandemic, Indonesia would need to boost the demand side of the economy.
"Of course, this is a homework for us all, so that we can return to the figure of 51.9, although we cannot deny that it all depends on several issues," Minister Kartasasmita stated at a web seminar titled “Relocating Investment to Indonesia in the Time of covid-19" in Jakarta on Tuesday.
The industry minister highlighted that the most crucial aspect is how Indonesia could keep the market demand healthy and ensuring absorption of products for Indonesia’s manufacturing industry.
The PMI figure for July 2020 was the highest since last February, thereby demonstrating the slow recovery of the domestic industrial sector.
Kartasasmita is optimistic that the Manufacturing PMI will be re-accelerated at an expansive point (level 50) as was recorded in February at 51.9 points.
"At least, the existing figure can be an indicator that our economy is starting to bounce back," he affirmed.
Kartasasmita pointed out that another evidence that the Indonesian economy has begun to show signs of improvement is investment growth in the industrial sector.
"We can also see recovery in terms of the value of industrial investment in the first half of 2020 that increased by 24 percent as compared to the corresponding period last year, from Rp104.6 trillion to Rp129.6 trillion," he stated.
In fact, during the period from January to June 2020, the non-oil and gas processing industry was one sector that had consistently provided the highest contribution to the value of national exports.
The total shipment value of products of the manufacturing sector reached nearly US$60.76 billion, or constituted 79.52 percent of the total national export figure that touched $76.41 billion. (antara)