Indonesia's manufacturing sector has consistently expanded for 22 consecutive months in June 2023, strengthening to a level of 52.5 compared to May 2023, which was at 50.3. Febrio Kacaribu, the Head of Fiscal Policy Agency at the Ministry of Finance, explained that the growth in the Manufacturing Purchasing Managers' Index (PMI) was driven by resilient demand levels, increased production capacity, and the need for more workers. Despite the current global economic slowdown, the improvement in the national PMI for June indicates that business sentiment remains relatively optimistic.
In the ASEAN region, the performance of the manufacturing sector shows varied developments. Thailand and Myanmar recorded expansion in June, reaching levels of 53.2 and 50.4, respectively. However, Malaysia and Vietnam continued to contract, with levels of 47.7 and 46.2, respectively. Therefore, it is crucial to maintain the achieved PMI level, as it will impact the sustainability of future economic growth. The Head of the Fiscal Policy Agency emphasized the need to sustain this condition to support the continuity of positive economic growth and job creation in the short term.
