The Indonesian Manufacturing Purchasing Managers' Index (PMI) released by S&P Global in June 2023 touched the level of 52.5, an increase from the previous month's level of 50.3. Even though the manufacturing index rose, Minister of Industry Agus Gumiwang said the textile industry was still suffering, aka contraction. To note, Indonesia's Manufacturing PMI in June 2023 surpassed ASEAN's Manufacturing PMI (51.0), Malaysia (47.7), Myanmar (50.4), Philippines (50.9), Taiwan (44.8), Vietnam (46 .2), Japan (49.8), China (50.5), South Korea (47.8), United Kingdom (46.2), and France (45.5).
Agus explained, the increase in Indonesia's Manufacturing PMI in June 2023 was in line with the increase in the Industrial Confidence Index (IKI) which had been released earlier.
The IKI in June 2023 reached 53.93 or an increase of 3.03 points compared to May 2023. This figure is also the highest since the IKI was released last November 2022.
However, continued Agus, amidst the expansionary conditions of the national manufacturing sector, the textile and textile product (TPT) industry is still experiencing contraction. It is even included as one of the three manufacturing sub-sectors that experienced a contraction in the June 2023 IKI survey.
"The cause of the textile industry is still suffering because the domestic market is flooded with imported products, especially those that enter through PLB (Bonded Logistics Centers). The Ministry of Industry requests that strict supervision be carried out on goods leaving PLB entering the domestic market, as well as on marketplaces which are also product entry points. imported textiles," said Agus in an official statement, Monday (7/3).
The Ministry of Industry also sees opportunities for the TPT industry with the new school year. This is believed to encourage and revive the TPT industry which is currently under pressure.
Through the policy of Increasing Use of Domestic Products (P3DN), it is hoped that the fulfillment of public school clothes and employee clothing in the government can increase production activities in the TPT industry to meet this demand.
Based on the S&P Global report, the expansion experienced by the Indonesian manufacturing industry in June 2023 was supported by an increase in new orders. This resulted in an increase in production, which also contributed to an increase in the number of workers.