Indonesia's Manufacturing PMI Falls to 51.2 in February 2022

IHS Markit reported that Indonesia's manufacturing sector continued to expand in February 2022. This expansion is indicated by the manufacturing Purchasing Managers' Index (PMI) remaining above the 50 level.

Despite continued expansion, Indonesia's manufacturing PMI fell from 53.7 in January 2022 to 51.2 in February 2022, marking its lowest point in the last six months.

According to IHS Markit, the decline in Indonesia's PMI was caused by a rise in Covid-19 cases, which hampered client demand and production schedules. This situation was exacerbated by restrictions on social activities to curb the spread of the virus.

IHS Markit also assessed that business confidence in Indonesia's manufacturing sector has fallen to its lowest level in 21 months.

On the other hand, IHS Markit noted an increase in workforce capacity to support increased demand and production in the manufacturing sector. The rate of job creation in February 2022 was considered the fastest since February 2020.