IHS Markit released the data on the Indonesian Manufacturing Purchasing Managers’ Index (PMI) for the May 2021 period, at 55.3 or the highest level in history of the survey. This figure increased significantly compared to the previous month, which was at 54.6; as new demand, output, and purchases rise. For the record, a PMI reading above level 50 indicates an expanding industrial sector. On the other hand, the Indonesian Manufacturing PMI also surpassed the ASEAN manufacturing PMI which was at 51.8. Indonesia was able to outperform Vietnam’s manufacturing PMI of 53.1; Malaysia 51.3; as well as Singapore at 51.7. NHKSI Research sees that the government’s incentive policy is able to increase public demand. The provision of incentives to reduce the Government-borne Sales Tax on Luxury Goods (PPnBM DTP) has succeeded in encouraging sales of four-wheeled motor vehicles to jump by almost 150%.

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