Indonesia's Statistics Agency Records Improved Performance in the Manufacturing Industry in Q4 2021

Bank Indonesia (BI)'s survey results report that the performance of the manufacturing industry improved in the fourth quarter of 2021 and is in the expansion phase. This is reflected in the Bank Indonesia Prompt Manufacturing Index (PMI-BI), which reached 50.17%, up from 48.75% in the third quarter of 2021.

Compared to the same period the previous year, the PMI-BI in the fourth quarter of 2021 was also higher. In the fourth quarter of 2020, the PMI-BI was recorded at 47.29%.

The increase in the PMI-BI in the fourth quarter of 2021 occurred across all its constituent components. The production volume component saw the highest increase, at 2.38 points, from 49.46% to 51.84%.

Respondents stated that this increase in production volume was in line with increased public activity during the Christmas and New Year holidays. In addition, the easing of Community Activity Restrictions (PPKM) according to government regulations in several regions also boosted manufacturing production volume.

BI noted that the component for the speed of receiving input goods increased by 2.19 points from 44.05% to 46.24%. The volume of finished goods inventory also increased by 1.78 points from 49.64% to 51.42%. Furthermore, the component for the number of employees increased by 1.4 points from 46.76% to 48.16%. The order volume component increased by 0.14 points from 51.53% to 51.67%.

BI further explained that the increase in the PMI-BI is consistent with the development of business activities in the manufacturing sector based on the results of the Business Activity Survey (SKDU) in the fourth quarter of 2021.