President Joko Widodo touched on the declining figure of Indonesia’s Manufacturing Purchasing Manager Index (PMI). According to him, the problem must begin to be addressed seriously.
Indonesia’s manufacturing index in July 2024 was at 49.3, down 1.4 points from the previous month’s position. The last time the Indonesian Manufacturing PMI contracted below 50 was in August 2021 or during the pandemic. At that time, the Indonesian Manufacturing PMI was at 43.7.
“We know that after the PMI was expansive for 34 consecutive months, in July 2024, we entered a contraction level. This must be observed carefully, and must be watched carefully,” said Jokowi at the First Plenary Cabinet Meeting at the IKN, Monday (12/8).
He asked the ministers and heads of related institutions to find the root cause and immediately handle it. Because, the decline in PMI has occurred since the last 4 months.
“We really need to see why domestic demand is weakening, it could be because of the high burden of raw material imports, it could be because of rupiah fluctuations, or because there is an onslaught of imported products entering our country,” said the former mayor of Surakarta.
The Head of State also emphasized the importance of purchasing local products, using local raw materials and also protecting domestic industry.
“It could also be because demand from exports is weakening. This is because there is a disruption in the supply chain or an economic slowdown in major trading partners. So we have to be able to find non-traditional markets and potential new export markets,” said Jokowi. (Z-11)
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