Due to PPKM, Indonesia's Manufacturing PMI Plummets to 40.1
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Indonesia's manufacturing sector performance plummeted in July 2021. The Fiscal Policy Agency of the Ministry of Finance (BKF Kemenkeu) stated that the implementation of the Community Activity Restrictions (PPKM) caused the Manufacturing Purchasing Managers' Index (PMI) to fall to 40.1.
This figure represents a 25% decrease from the previous month's 53.5. Furthermore, the July 2021 Manufacturing PMI was the lowest since June 2020.
Nevertheless, the July 2021 manufacturing performance was still better than during the initial implementation of large-scale social restrictions (PSBB) in Indonesia. The Indonesian Manufacturing PMI was recorded at 27.5 in April 2020.
The decline in the Manufacturing PMI to below 50 indicates a contraction in manufacturing sector activity. This decline was caused by the implementation of Emergency PPKM and Level 4 restrictions to curb the increase in Covid-19 cases due to the widespread spread of the Delta variant.
BKF Kemenkeu explained that the decline in the Manufacturing PMI was also felt by other ASEAN countries, as Southeast Asian nations are also tackling surging Covid-19 cases.
"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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