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Domestic demand keeps RI factories humming as regional peers falter
Indonesia’s manufacturing purchasing managers’ index (PMI) rebounded last month on the back of strong domestic demand, even while activity slumped in other countries in the region amid weak global demand.
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A worker completes the production of sarung cloth in a textile factory in the Majalaya industrial estate in Bandung regency, West Java, on Jan. 4, 2019. (Antara/Raisan Al Farisi)
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ndonesia’s manufacturing purchasing managers’ index (PMI) rose again last month on the back of strong domestic demand, even while activity slumped in other countries in the region amid weak global demand.
The PMI report published by S&P Global on Monday shows that the index jumped by 2.2 points to 52.5 in June from 50.3 in May.
The report is based on a survey of purchasing executives from around 400 manufacturing companies across Indonesia to determine business conditions.
"Growth momentum across Indonesia's manufacturing sector re-accelerated in June, according to the latest S&P Global PMI data,” wrote S&P Global economics associate director Jingyi Pan in a press statement released on Monday.
The latest figure marks a rebound from May, when the country’s PMI almost slipped below the 50-point threshold that separates expansion from contraction. The index has remained in the expansion territory for 22 months in a row.
“The pace at which overall demand increased was solid overall, though the lack of external orders continued to dampen total sales growth,” Pan said.
The statement noted that the improved conditions were owed to an increase in demand, which led to faster production growth and a rise in backlogs.
