PMI increase could boost investment

id Coordinating Minister for Economic Affairs Airlangga Hartarto,PMI,Purchasing Managers' Index,investment,manufacturing se

PMI increase could boost investment

Coordinating Minister for Economic Affairs Airlangga Hartarto. (ANTARA/HO-Coordinating Ministry for Economic Affairs/pri/uyu)

Jakarta (ANTARA) - The increase in the manufacturing Purchasing Managers' Index (PMI) in April 2023 could also improve the investment entering the country, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

"The rise in the PMI has also improved the positive expectations of business actors about the condition of the Indonesian economy, thus it has the opportunity to attract new investment into the country," he explained in a press release issued on Thursday.

According to his statement, Indonesia's manufacturing PMI in April was categorized as expansive, as it reached a level of 52.7, an increase from 51.9 in March.

Indonesia's manufacturing PMI in April 2023 was the highest on record since September 2022. The achievement helped Indonesia enjoy a stable and expansive PMI for 20 consecutive months.

The PMI readings of other ASEAN member countries varied. Some of them were expansive, such as Thailand (60.4 points), Myanmar (57.4), and the Philippines (51.4).

Meanwhile, Malaysia's index (48.8) was at a contractive level, that is, below 50.

The coordinating minister noted that Indonesian manufacturing companies recorded a significant increase in production outputs, new orders, and purchasing activities.

Currently, the opening of new work opportunities has also reached its highest level in five months, he informed.

He noted that the manufacturing sector still has positive expectations and has shown the strongest business optimism since November 2022.

Although the global economy is tending to weaken, Indonesia's manufacturing activity has continued to improve since it has been supported by increasing domestic economic activity and demand, Hartarto said.

"Thus, various driving aspects of the (national) economy continue to be on the right (development) track to support strong (domestic) economic growth," he added.

Director for Economic Indicators and Surveys at S&P Global Market Intelligence Tim Moore said that the Indonesian manufacturing industry has repeatedly found the best momentums.

The business condition has shown stronger domestic demand, which has prompted the fastest increase in new demand and production volume in seven months, he added.

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S&P Global Market Intelligence is the publisher of the Purchasing Managers' Index and a subsidiary of American financial information and analytics company, S&P Global Inc.