Tuesday, 15 October 2019 | 05:58 WIB

Indonesian Manufacturing Sector‘s Performance Accelerates in Q1 2019

Indonesia Minister of Industry Airlangga Hartarto (special)

JAKARTA, NETRALNEWS.COM - The Indonesian manufacturing industry sector has shown positive performance during the first quarter of 2019.

This is indicated by the Prompt Manufacturing Index (PMI) released by Bank Indonesia (BI). Indonesia's manufacturing PMI in the first quarter of 2019 rose to 52.65 percent, as compared to 52.58 percent in the same period latst year.

This figure shows the manufacturing industry sector is at an expansionary level. This condition is also in line with the growth of business activities in the manufacturing industry sector in quarter I-2019.

"From small to large scale, the growth of the manufacturing industry during the period of Jokowi-JK government experienced significant growth," said Indonesia Minister of Industry Airlangga Hartarto in Jakarta, on Friday (04/12/2019).

In the period of 2014-2017, the middle class industry experienced growth of 5,898 units, so that in 2014 the number was 25,000 business units to 31,000 business units. "For the small business sector, in the past four years, there has been an increase of almost one million business players," said the Minister of Industry.

Meanwhile, according to the publication of the PMI-BI survey, an increase in the manufacturing sector business in the first quarter of 2019 was indicated by a Weighted Net Balance (SBT) in manufacturing business activities of 1.00 percent or higher compared to quarter IV-2018 which reached 0.32 percent.

"Therefore, the Ministry of Industry continues to coordinate with other ministries and institutions to further encourage the manufacturing industry sector to contribute more to national economic growth, and can support social stability and dynamic private sector development," he explained.

Then, an increase in the performance of the manufacturing industry during the first quarter of 2019 was also driven by expansion in most components of the PMI forming index, especially the order volume index, production volume index and finished goods inventory index. The volume order indicator in quarter I-2019 was recorded as experiencing an expansion with an index of 54.04 percent.