Manufacturing PMI Growth Depends on Domestic Market: APINDO

TEMPO.CO, Jakarta - The Indonesian Employers Association (APINDO) deputy chairperson Shinta W. Kamdani on Wednesday said time is one aspect essential towards the expansion of Indonesia’s manufacturing industry following the weakening market caused by the Covid-19 pandemic. 

She believes the growth of manufacturing purchasing managers index (PMI) is hampered by the fact that nearly every national manufacturing industry sells its products to the domestic market, which is still seeing weak demands.

“Which is why as long as the domestic market demand is contracted by the PPKM, the national manufacturing industry will continue to find it difficult to expand productivity,” said the Apindo deputy on September 1, Bisnis.com reported. 

She believes expansion amidst weak demands will only present a risk of businesses sustaining bigger losses due to product supplies that are not absorbed by the market. 

The Apindo deputy believes boosting the PMI numbers cannot just be done by loosening the restrictions under the country’s PPKM status, but will only be feasible if domestic demands recover. Shinta argues market demands remain low even if the government imposes PPKM Level 1, the most relaxed restriction level.

The quicker the national market demand rebounds this month, the PMI will be able to stabilize at the expansive zone by the end of the year,” she said.

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BISNIS