Indonesia's Manufacturing Industry Performance Declined in the Third Quarter of 2021

According to a Bank Indonesia (BI) report, the performance of the manufacturing industry declined in the third quarter of 2021. This is reflected in the Bank Indonesia Manufacturing Index (PMI-BI) of 48.75%.

This figure is lower than the previous quarter's 51.45%. However, the PMI-BI in the third quarter of 2021 was still higher than the same period last year, which stood at 44.91%.

The decline in the PMI-BI in the third quarter of 2021 occurred across all of its constituent components. The sharpest decline was in the production volume component, falling 4.6 points from 54.20% to 49.6%.

The input goods order volume component decreased by 2.5 points from 54.03% to 51.53%. The volume of finished goods inventory also decreased by 1.99 points from 51.63% to 49.64%.

Furthermore, the employment component fell by 0.92 points from 47.68% to 46.76%. The input goods receipt speed component decreased by 2.52 points from 46.57% to 44.05%.

The central bank explained that the decline in the PMI-BI is in line with the contraction in manufacturing sector activity based on the Business Activity Survey (SKDU). This occurred due to the decline in manufacturing industry activity during the Community Activity Restrictions (PPKM) in July-August 2021.