The expansion of export markets and the impact of comprehensive economic agreements with several countries are expected to boost production demand, leading to an increase in Indonesia's Manufacturing Purchasing Managers' Index (PMI) for the remainder of the year. "As the industry is multisectoral, we look at the global situation, we push for new markets, and secondly, we maintain it through Comprehensive Economic Partnership Agreements (CEPA), which will help with that," said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Presidential Palace Complex in Jakarta on Monday, June 5. Airlangga's statement was in response to the decline in Indonesia's Manufacturing PMI, which fell to 50.3 in May 2023 from 52.7 in April 2023. According to Airlangga, the drop in PMI, the lowest level of expansion since November 2022, was due to slowing global demand. He stated that the government would continue to monitor the global and domestic economic conditions that affect demand for Indonesia's economy. He also expressed confidence that Indonesia's Manufacturing PMI would rebound in the coming months as the manufacturing sector expands again.
According to S&P Global, Indonesia's PMI recorded a decline to 50.3, down from the previous month's figure of 52.7. This May 2023 expansion rate is the lowest since November 2022. Meanwhile, Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, stated that the main development in the PMI survey for Indonesia was the decline in new orders due to weaker domestic and global economic conditions impacting new demand. Jingyi emphasized the importance of monitoring the resilience of the recent decline in demand, as it will affect short-term growth forecasts. On the other hand, weaker demand conditions have reduced price pressures for Indonesian producers. The PMI Manufacturing Index serves as an economic indicator that reflects the confidence of business managers in the manufacturing sector. A PMI score below 50 indicates contraction, while above 50 represents economic expansion.
Source:
https://koran-jakarta.com/pemerintah-dorong-perluasan-pasar-ekspor?page=all
