IHS Markit noted that Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) in August was at 43.7, or higher than 40.1 in the previous month. Although it
was still in the contraction phase, Indonesia’s manufacturing in August 2021 showed improvement. The easing of restrictions on economic activity, boosted output and new demand in August 2021, slowing down the decline compared to July 2021. NHKSI Research sees that Indonesian manufacturing is still faced with the accumulation of employment buildup amidst workforce downsizing. Manufacturing also experienced a decline in pre-production inventories, delays in delivery, and increased raw material costs in August 2021. Meanwhile, the gradual easing of social restrictions boosted optimism about the prospects of the domestic manufacturing industry.

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