Indonesia's Manufacturing Business Strengthens in April 2022
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Indonesia's Manufacturing Purchasing Managers' Index (PMI) showed expansion to 51.9 in April 2022, an increase from 51.3 in March 2022. According to IHS Markit, this indicates an improvement in business conditions across Indonesia's manufacturing sector.
"Manufacturing production and new orders both rose at a faster rate due to improving economic conditions, driving increases in employment and purchasing activity," IHS Markit stated in a press release on Wednesday, May 4, 2022.
Febrio Kacaribu, Head of the Fiscal Policy Agency at the Ministry of Finance, echoed this sentiment. "Amidst the ongoing geopolitical conflict, export demand for Indonesian manufactured products, particularly commodity-based products, increased in April. This is reflected in export growth reaching 35.2 percent (yoy) in Q1-2022," Febrio said in a press release on Wednesday, May 4, 2022.
"Along with this increased demand, businesses continue to increase their production capacity by creating new jobs and increasing inventory. Job creation was recorded at its highest level in history, at least in the last 11 years," Febrio continued.
Despite the claimed improvement, IHS Markit noted that Indonesia's manufacturing sector still faces supply issues, inflationary pressures, and weakening business confidence.
"Supply issues remain with longer lead times reported despite reduced Covid-19 disruptions in April. Price pressures also worsened in April which could hamper production momentum," said Jingyi Pan, Economics Associate Director at IHS Markit, in a press release on Wednesday, May 4, 2022.
"At the same time, business confidence fell sharply in April and it is crucial to monitor the impact of rising inflationary pressures," she continued.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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