Indonesia's Manufacturing PMI Rebounds to 52.2 in September 2021

Indonesia's Manufacturing Purchasing Managers' Index (PMI) reached 52.2 points in September 2021, an increase of 8.5 points compared to the previous month's 43.7.

An index above 50 indicates industry expansion and optimism among industry players. This shows a recovery trend in the manufacturing sector in September 2021 after two months of contraction.

The IHS Markit survey indicates that the increase in Indonesia's manufacturing PMI was due to the easing of social restrictions in various regions, marked by a decrease in Covid-19 cases. In September 2021, both output and new demand in the manufacturing sector increased after two months of sharp decline.

According to the Minister of Industry, Agus Gumiwang Kartasasmita, despite the decline in the manufacturing PMI in July-August 2021, he is optimistic that the industry will return to expansion with the easing of the Emergency Community Activity Restrictions (PPKM). With the manufacturing sector expanding again, the Minister of Industry believes that the 5 percent industrial growth target in 2022 can be achieved.

Indonesia's PMI in September 2021 surpassed that of other Asian countries, such as China (50 points) and Japan (51.5 points). Furthermore, Indonesia's PMI was the highest among other ASEAN countries, exceeding Singapore's 52.1 points.

To maintain this condition, the Minister of Industry continues to urge industry players to comply with regulations regarding Operational Permits and Industrial Activity Mobility (IOMKI) in accordance with the Minister of Industry's Circular Letter Number 5 of 2021 regarding Amendments to Circular Letter No. 3 of 2021 concerning Operations and Mobility during the Covid-19 Emergency.