Bank Indonesia (BI) estimates that the performance of the manufacturing or processing industry sector will increase and are in an expansionary phase.

This is reflected in the Bank Indonesia Prompt Manufacturing Index (PMI-BI) of 50.01% in the first quarter of 2021, up from 47.29% in the fourth quarter of 2020. On an annual basis, the PMI-BI position for January-March 2021 is also better than the same period last year which was only 45.65%.

This achievement is in line with the increase in activities in the manufacturing sector as a result of the Business Activity Survey (SKDU).

In his statement, Head of the BI Communication Department, Erwin Haryono, said that the increase occurred in almost all components of the PMI-BI formation. Especially the total order volume, the finished goods inventory volume, and the production volume which are in the expansion phase.

In terms of sub-sectors, the majority of respondents noted improved performance in the first quarter of 2021, especially in the food, beverage and tobacco sub-sector, the fertilizer, chemical and rubber goods sub-sector, and the textiles, leather goods and footwear sub-sectors, which are already in an expansion phase.

In the future, Erwin said that in the second quarter of 2021, the performance of the manufacturing sector is predicted to increase and will be in an expansion phase. PMI-BI in the second quarter of 2021 is estimated at 55.25%, an increase from the previous quarter.

The increase in PMI-BI was driven by all of its constituent components, especially production volume, total order volume, and volume of finished goods inventories which were in the expansion phase.

"In addition, all sub-sectors are predicted to be in an expansionary phase, particularly the paper and printed goods sub-sector, the food, beverage and tobacco sub-sector, as well as the fertilizer, chemical and rubber goods sub-sectors. Respondents predicted this increase will be driven by increased demand during Ramadan and the day of the week. Eid al-Fitr, "said Erwin.