Indonesia's Manufacturing Industry Performance Expected to Improve in Q1 2023

Jakarta: The latest Prompt Manufacturing Index-Bank Indonesia (PMI-BI) reading in the fourth quarter of 2022 remained solid and in an expansionary phase at 50.06%, despite retreating from 53.71% in the previous period.  
 
"Most PMI-BI components are recorded in the expansionary territory in the reporting period, particularly order volume, inventory and production volume," BI Communication Department Executive Director Erwin Haryono said in a media release on Friday, January 13, 2023. 
 
By subsector, the Cement and Non-Metallic Mineral Products subsector, Textiles, Leather and Footwear subsector, Transportation Equipment, Machinery and Apparatus subsector, Paper and Printing subsector, as well as the Food, Beverages and Tobacco subsector recorded expansion. 
"The PMI-BI trend is consistent with the latest Manufacturing Industry findings presented in the Business Survey (SKDU) published by Bank Indonesia, where the corresponding weighted net balance (WNB) was recorded at 1.04%," he stated.
 
Survey respondents expect Manufacturing Industry performance to improve in the first quarter of 2023, with the PMI-BI increasing to 53.30% from 50.06%. 
 
Respondents predict all PMI-BI components to improve/increase, led by production volume, order volume and inventory. 
 
Furthermore, respondents anticipate all Manufacturing Industry subsectors in an expansionary phase, with the Textile, Leather and Footwear subsector recording the highest index. 
 
Meanwhile, the PMI-BI readings for Wood Products and Other Forest Products; Fertilisers, Chemicals and Rubber Products; as well as Basic Iron and Steel are forecast to increase.