Workers assemble electric irons at a factory operated by PT Selaras Citra Nusantara Perkasa in Cileungsi, Bogor, West Java. - JP
JAKARTA (The Jakarta Post/Asia News Network): Indonesian factories are in good shape as a key forward-looking indicator has reached the highest level in eight months thanks to strong order books.
According to London-based data firm IHS Markit, part of S&P Global, Indonesia’s manufacturing purchasing managers’ index (PMI) rose to 53.7 in September. Up 2 points from August, that is the highest reading since January for the index, which measures factory activity based on a survey of 400 firms.
“Latest survey data was consistent with the strongest improvement in the health of Indonesia’s manufacturing sector since January,” S&P Global economist Laura Denman said in a press statement on Monday (Oct 3).
Indonesia’s manufacturing PMI has been on a steady upward trend since a low point in May, when it tanked to 50.8 points, though still signifying an expansion in activity by remaining above the threshold of 50 points.
Indonesia’s performance was slightly above the Asean headline PMI of 53.5 points and the second-best among emerging economies of the region, trailing only behind Thailand’s 55.7 points.
The Philippines and Vietnam followed Indonesia with 52.9 points and 52.5 points, respectively, while Malaysia’s manufacturing PMI fell into contraction territory with a reading of 49.1 points, down from 50.3 points in August and the lowest figure this year.
