Indonesia's manufacturing outlook brightens after Q2 expansion: BI

Bank Indonesia (BI) said its Prompt Manufacturing Index (PMI-BI) stood at 51.43 in the second quarter, easing from 52.03 in the previous quarter but remaining above the 50 threshold that signals expansion.

BI Communications Executive Director Ramdan Denny Prakoso said Friday that most key components remained in expansion, led by production volume, finished goods inventories and total orders.

Those components posted readings of 53.81, 53.00 and 52.77, respectively.

Across industries, machinery and equipment led with an index of 58.24, followed by food and beverages (54.05), basic metals (53.59) and non-metallic mineral products (53.22).

BI expects manufacturing activity to strengthen further in the third quarter, with the PMI-BI projected to rise to 52.32.

The expansion is expected to be driven by production volume (54.33), finished goods inventories (53.67) and total orders (53.66).

Most manufacturing industries are forecast to remain in expansion, led by machinery and equipment (56.62), tobacco processing (56.00), basic metals (55.87) and transport equipment (55.44).

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Translator: Rizka Khaerunnisa, Uyu Liman