Jakarta: Manufacturing industry performance in the fourth quarter of 2020 represented continuous improvement despite being in a contractionary phase, as reflected by the increase in the Prompt Manufacturing Index of Bank Indonesia (PMI-BI) to 47.29%, from 44.91% in the previous quarter and 28.55% in the second quarter of 2020.
"Improvement were reported in almost all PMI-BI components, primarily production volume as supported by speed of supplier delivery time and workers," said BI Communication Department Head Erwin Haryono in a press release on Wednesday.
By sector, most sub-sectors recorded performance improvement in the fourth quarter of 2020, mainly for Iron and Basic Steel, Fertilizer, Chemical, and Rubber Products, followed by Paper and Printing sub-sector, which are currently in an expansion phase.
In the first quarter of 2021, survey respondents predicted an increasing in Manufacturing Industry and will be in an expansionary phase, with PMI-BI regaining 51.14%, from 47.29% in the previous quarter.
PMI-BI increase will be driven by components of order volume, inventories and production volume which are in the expansion phase.
Within the period, several sub-sectors are estimated to be in the expansion phase, dominated by Food, Beverage, and Tobacco, Cement and Non-Metallic Mineral, Fertilizer, Chemical, and Rubber Products, and Paper and Printed Products.