The manufacturing sector's performance is projected to increase and will be in an expansionary phase throughout the first quarter of 2021.

"This is reflected in the Bank Indonesia Prompt Manufacturing Index (PMI-BI) of 50.01%, an increase from 47.29% in the fourth quarter of 2020, in line with the increased activity in the manufacturing sector as a result of the Business World Activity Survey (SKDU)," he said. BI official statement, Wednesday (14/4).

The increase occurred in almost all components that make up PMI-BI, especially the volume of total orders, the volume of finished goods inventories, and the volume of production in the expansion phase.

In terms of sub-sectors, most respondents noted improvement in performance in the first quarter of 2021, particularly in the food, beverage and tobacco, fertilizer, chemical and rubber goods subsectors and the textiles, leather goods, and footwear subsectors which are already in the expansion phase.

In Q2 / 2021, the manufacturing sector is forecasted to improve and is in an expansionary phase. The PMI-BI in Q2 / 2021 is predicted at 55.25%, an increase from the previous quarter.

The increase in PMI-BI was driven by all of its constituent components, especially production volume, total order volume, and the volume of finished goods inventories in the expansion phase.

Also, all sub-sectors are predicted to be in an expansionary phase, particularly the paper and printed goods sub-sector, the food, beverage, and tobacco sub-sector, and the fertilizer, chemical, and rubber goods subsector.

Respondents predicted that this increase would be driven by increased demand during Ramadan and Eid al-Fitr.