Indonesian manufacturers are increasingly pessimistic about growth, as a decline in domestic demand continues to negatively impact output, purchasing, and employment. The country's Purchasing Managers' Index (PMI) dropped to 46.9 in June, its second-lowest reading since August 2021. This decrease is largely due to a sharper fall in new orders and production, primarily from domestic customers. Export orders, however, remained stable after two months of contraction. Many manufacturers are delaying expansion plans while they await government measures to protect local industries, especially policies to shield the domestic market from an influx of inexpensive imported goods. Despite the contracting PMI, imports rose for the fourth consecutive month, reaching 4.14% year-on-year, suggesting stable domestic demand and proactive inventory building. Total imports climbed to $20.31 billion, driven by a significant increase in capital goods (up 24.85% year-on-year) and a slight rise in consumer goods (up 5.28%). Conversely, imports of intermediate goods fell by 1.18%, consistent with the ongoing slump in domestic manufacturing. (ICE GIACARTA)

Fonte notizia: The Jakarta Post 02/07