Great News!! Indonesian manufacturing index keeps crawling up

The activities of manufacturing industry in Indonesia continue to move on in the midst of Covid-19 pandemic impact pressure. This loop is seen from Purchasing Managers ‘ Index (PMI) of the Indonesian manufacturing that reach at the level of 46.9 in July 2020 or up compared to the previous month which occupies a position of 39.1.

The result of survey that there were a surge in 7.8 points released by IHS Markit. It is based on increased business confidence to normal market conditions. The Headline PMI in July 2020 was the highest level since last February and proves that the operation of the domestic industrial sector slowly began to recover.

“The increase in PMI shows that the domestic industry continues to recover. We have seen the growth, and gradually it rebound during this pandemic, “said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta.

Ministry of industry optimistic that the manufacturing’s PMI will be back to expansive point (in level 50) as achieved in February at 51.9 points. “At least, the existing figures can be an indicator that our economy is starting to bounce back,” he said.

According to Minister, another evidence showing that Indonesian economy began to improve can be seen from the growth of investment in the industrial sectors. “We can see the recovery from the value of industrial investment in the first semester in 2020 which was increased by 24% compared to the same period last year, mentioned from Rp 104.6 trillion to Rp 129.6 trillion,” he explain.

Even in the January-June 2020, the processing of oil & gas industry is still consistently contributes to the most achievement of national export values. Total shipping value of manufacturing sector products achieved up to USD 60,76 billion or accounted for 79.52 percent of the total national export figures reaching USD 76,41 billion.

The Minister of Industry presented, a resounding record achieved by the industry sector is a positive development towards accelerating the national economic growth. In addition, it can give confidence to investors that the business climate in Indonesia remains conducive.

“Therefore, the government has rolled out stimulus or incentives for the protection of industrial sectors in the country to face current pandemic situations,”. As for some incentives that have been proposed by the Ministry of Industry like the decline in gas prices and the facility of electricity costs waivers for the industrial sector.

“The proposal was an effort to assist industrial sector to survive or to operate more efficiently,”. Nevertheless, the company should be able to run a commitment to adapt the new habits in conducting factory operations, such as the implementation of healthcare protocols in the working environment.

Agus stressed that the application of health protocols remains to be the priority of the industry sector in all activities during the Covid-19 pandemic. Adherence to healthcare protocols is a precautionary measure so that the manufacturing industry sector is spared from the Covid-19 cluster.

“We fully support the industry sector for creating and contributing to the national economy. Industry workers should be able to utilize the opportunities that arise in pandemic while adhering to the health protocol, “he explained.

 Responding to the results of the Indonesian manufacturing of PMI on July 2020, The Chief Economic of IHS Markit Bernard Aw said that the worst impact of the Covid-19 pandemic was felt in the second quarter. However, there is still hope assisted by the Government’s efforts through relaxation and the handling step of Covid-19. “The company also remained optimistic about their output within one year,” he said.

 Based on a survey conducted by IHS Markit, nearly two-thirds of panelists expect an increase in output over the next 12 months. Optimism is primarily based on the expectation that the Covid-19 situation will improve in the coming months.

Source :,-Indeks-Manufaktur-Indonesia-Terus-Merangkak-Naik