Indonesian Manufacturing Sector Continues to Expand in May 2023

The Indonesian manufacturing sector expanded for the 21st month in a row.

IDXChannel - The Indonesian manufacturing sector expanded for the 21st month in a row. The country's Manufacturing Purchasing Managers' Index (PMI) reached 50.3 in May 2023.

The expansion was mainly driven by increased production and input purchasing activities.

In the ASEAN region, Manufacturing PMI data showed a mixed trend.

"The Manufacturing PMIs of Thailand and Myanmar were still in the expansion zone even though they were starting to experience a slowing trend," said Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemenkeu), Febrio Kacaribu in Jakarta, Monday evening (5/6/2023).

Meanwhile, the Manufacturing PMIs of Malaysia and Vietnam in May 2023 were still in the contraction zone, at 47.8 and 45.3 respectively, in line with the global Manufacturing PMI trend.

"The expansion of Indonesia's manufacturing sector is mainly reflected in the employment rate in May which was at 50.6, the best achievement in the last 6 months," continued Febrio.

However, business actors seem to have begun to anticipate the impact of the global economic slowdown to the domestic economy. For this reason, it is necessary to continue to develop sustainable domestic demand growth to support manufacturing sector.

"The trend of improving inflation needs to be maintained to support people's purchasing power. The government will also continue to anticipate the impact of a global economic slowdown and maintain optimism in the business world," concluded Febrio. (WHY)