Indonesia's Manufacturing Purchasing Managers Index (PMI), which broke the 55.3 level in May, is projected to continue in the following months or at least until the third quarter of 2021.
Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, said that the PMI calculation, which is compared on an annual basis (yoy), has reached a very high level in recent months.
Expansive levels with achievements above 50 are also projected to continue in line with manufacturing growth which is considered positive starting in the second quarter of 2021.
"PMI and future manufacturing growth will still be maximized, although some sectors are still being monitored for wobbling, such as textiles and electronics," he said.
Faisal hopes that in the future the progress of mutual cooperation vaccination will be faster so that it can reduce the current restrictions. This is to maintain positive performance, especially for manufacturing until the end of the year.
Even so, Faisal said that reaching an expansive level with a significant re-absorption of labor is not considered possible in the near future. The reason is, the main target of manufacturers at this time is certainly more to increase the capacity that has fallen due to the pandemic.
"Based on BPS data, there is an increase in the aggregate workforce, it is still slow, but with more expansion, of course, the need for labor will increase," he said.
Faisal also assessed that a number of sectors that had boosted growth even though it had not been in the direction before the pandemic included chemical-pharmaceuticals, metals, iron-steel, and food-beverage.
Previously, Minister of Industry Agus Gumiwang Kartasasmita said that the expansion rate in Indonesia's manufacturing sector had reached a new record in May 2021. This was also a signal for the revival of the industry.
This position of expansion was marked by new demand, output, and purchases rising at a rate unprecedented in the survey's 10-year history. In fact, the employment aspect has returned to growth after 14 months to meet the growing demand for operational capacity.
"Alhamdulillah, we are very grateful and grateful to industry players in the country who are still aggressive in running their business amidst the current impact of the Covid-19 pandemic. The government is determined to continue to create a conducive business climate through various strategic policies," he said.