The Ministry of Industry (Kemenperin) stated that strengthening demand for domestic industrial products through increased purchases contributed to the increase in the Indonesian Manufacturing Purchasing Manager Index (PMI). "Demand is important for (PMI Manufacturing) to increase," said Acting Director General of the Chemical, Pharmaceutical and Textile Industry (Dirjen IKFT), Ministry of Industry, Taufiek Bawazier, as reported by Antara in Purwakarta, West Java, some time ago. He invited the public to buy local products in order to maintain the level of demand as well as the Manufacturing PMI index considering the large population of Indonesia. "Not only love domestic products but buy domestic products," said Taufiek.
Apart from that, Taufiek said that the PMI Manufacturing index could also be increased through the allocation of government spending by purchasing domestic products for the needs of government projects and state-owned enterprises (BUMN). TKDN (Domestic Component Level) must be strengthened for all central government spending, regional governments, BUMN must spend on domestic products.
Attracting investment to Indonesia, said Taufiek, could also increase the Manufacturing PMI index because Indonesia is an attractive country for investors to invest their capital. "That's why we are strengthening it so that investment also goes to the supply chain which we are still not directing enough," he said.
For information, the Indonesian Manufacturing PMI index is still recording expansion at the level of 53.9 points as of August 2023. This figure has increased compared to June 2023 which was recorded at the level of 52.5 points. Apart from Indonesia, other countries such as India, Russia, Mexico and Saudi Arabia also have expansive Manufacturing PMI indexes where India recorded the highest Manufacturing PMI at the level of 58.6.