Manufacturing PMI that is still expansive, with better workforce absorption rate, reflects Indonesia’s resiliency amid the continuing global economic stagnation Jakarta (ANTARA) – Expansion of the Indonesian manufacturing sector is primarily reflected in the workforce absorption rate that was the best in the last six months, at 50.6 percent in May 2023, the Finance Ministry stated.The Indonesian manufacturing sector consistently expanded for 21 months in a row in 2023 by booking a Purchasing Managers’ Index (PMI) level of 50.3, Head of the Ministry’s Fiscal Policy Agency (BKF) Febrio Kacaribu noted. The expansion of manufacturing activities is driven by an increase in production activities as well as input purchasing activities, he noted through a statement issued on Tuesday. “Manufacturing PMI that is still expansive, with better workforce absorption rate, reflects Indonesia’s resiliency amid the continuing global economic stagnation,” he noted. However, he reminded that entrepreneurs appeared to have started to anticipate the impacts of global economic stagnation on the domestic sector. Hence, sustainable development of domestic demand should be maintained to support the manufacturing sector’s activities. The improving inflation trend should be maintained to boost the public’s purchasing power. The government will also continue to anticipate the risks of global economic stagnation and maintain the business world’s optimism. In the ASEAN, Kacaribu noted that the manufacturing PMI data showed a varying trend. Thailand and Myanmar’s manufacturing PMIs are still in the expansion zone despite the fact that they had begun showing signs of slowing down. Meanwhile, the manufacturing PMIs of Malaysia and Vietnam in May 2023 are still in the contraction zone, at the level of 47.8 and 45.3 respectively, in line with the global manufacturing PMI trend. Earlier, Minister of Industry Agus Gumiwang Kartasasmita had stated that the pace of manufacturing industry activities last month was supported by continuing productivity, as the supply of raw materials was maintained.
Source: Antara News Agency