During the COVID-19 crisis, Indonesia’s manufacturing activity experienced extreme lows in Q2-2020 and Q3-2020 before entering a period of fragile recovery. But when the Indonesian government tightened social and business restrictions at the start of July 2021, manufacturing activity again plunged.
Fortunately, though, the IHS Markit Indonesia Manufacturing Purchasing Managers’ Index (PMI) bounced back to a reading of 52.2 in September 2021, up from 43.7 in the preceding month, thanks to growing manufacturing output and new orders after two months of steep declines.
The combination of falling numbers of COVID-19 cases, hospitalizations, and deaths as well as the relaxation of social and business restrictions (PPKM) allow an increase in economic activity in Indonesia, including consumption. This, in turn, encourages manufacturers to boost output.
The latest manufacturing data of Indonesia show that both output and new orders returned to growth with survey respondents highlighting that demand has revived as the country’s COVID-19 situation improves, while the easing of PPKM restrictions in some areas helped to boost activity as well.
Read the full article in the September 2021 edition of our monthly report. This report can be ordered by sending an email to email@example.com or a message to +62.882.9875.1125 (including WhatsApp).
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