The performance of the manufacturing industry appears to have increased in early 2022. The Bank Indonesia's Prompt Manufacturing Index (PMI-BI) in the first quarter of 2022 was recorded at 51.77%, an increase from 50.17% in the fourth quarter of 2021. The Executive Director of the Head of the Communications Department, Bank Indonesia (BI), Erwin Haryono, revealed, apart from increasing, the performance of the manufacturing industry is in an expansion phase or index above 50. "The increase in PMI-BI in the first quarter of 2022 was driven by a number of increased activities, along with the easing of the PPKM, thereby increasing optimism and boosting public demand," Erwin wrote in his report, Thursday (14/4).

In the report, it appears that the majority of the components that make up the PMI-BI have increased, especially in the components of Total Order Volume, Production Volume, and Finished Goods Inventory Volume, which are even in the expansion phase.

He detailed that the Order Volume Index in the first quarter of 2022 was recorded at 54.33%, an increase from 51.67% in the fourth quarter of 2021. The increase occurred in some sub-sectors, particularly the paper and printed matter, textile, leather goods and footwear, as well as food, beverage and tobacco sub-sectors.

Then, the Production Volume Index was recorded at 53.81% or higher than 51.84% in the fourth quarter of 2021. "This increase is in line with the increase in demand and the availability of adequate production facilities," said Erwin.

The increase in production volume occurred in several sub-sectors, particularly the paper and printed matter, food, beverage and tobacco sub-sectors, as well as textiles, leather goods and footwear.

Along with this, the Finished Goods Inventory Volume Index was recorded at 53.59% in the first quarter of 2022, an increase from 51.42% in the previous quarter. This increase occurred in a number of subsectors, such as paper and printed matter, textiles, leather goods and footwear, as well as food, beverages and tobacco.

Improvements were also seen in the use of labor. The Labor Use Index was recorded at 49.40% or improved from 48.16%. Unfortunately, it is still not in the expansion zone or the index is below 50.

The good news is that there are sub-sectors that have recorded an increase in labor absorption and are in an expansion phase, namely the paper and printed goods sub-sector, as well as the food, beverage and tobacco sectors.

On the other hand, the pace of acceptance along with inputs in the first quarter of 2022 appears to have decreased. The index was recorded at 45.22% or lower than 46.24% in the previous quarter. "This decline was due to logistical constraints due to the scarcity of containers and high freight costs," Erwin explained.

The decline occurred in a number of sub-sectors, including fertilizers, chemicals, and rubber goods, then iron and steel base metals, as well as wood and other forest products, which were also still at a contraction level.