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RI manufacturing strongest in years thanks to domestic demand
The manufacturing purchasing managers’ index (PMI) rose to a 27-month high in March on the back of strong domestic demand. The PMI report published by S&P Global shows that the index jumped by 1.5 points to a reading of 54.2 in March.
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New cars are parked at a factory in Bojomangu, Bekasi Regency, West Java, on March 13, 2024. (Antara/Fakhri Hermansyah)
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ndonesia’s manufacturing purchasing managers’ index (PMI) rose to a 27-month high in March on the back of strong domestic demand, while export demand waned.
The PMI report published by S&P Global on Monday showed that the index jumped by 1.5 points to 54.2 in March, the highest since December 2021, from 52.7 in February.
That marks the 31st consecutive month in which Indonesia’s manufacturing PMI points to an expansion of factory activity, as marked by readings above the 50-point threshold that separates expansion from contraction.
The report is based on a survey of purchasing executives from around 400 manufacturing companies across Indonesia to determine business conditions.
The survey results detail that the upturn in total orders was driven by the domestic market, given that the subindex for new export orders slithered into contraction in March, after stagnating in the preceding month.
"While firms were confident that demand will remain favorable in the coming months, some doubted that such strength could be sustained on a longer horizon,” reads the statement from Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
Read also: Weaker consumption, exports bite Indonesia's 2023 economic growth
