May 4, 2020
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit decreased from 45.3 in March to 27.5 in April. April’s PMI was the lowest on record and also marked the most significant deterioration in ASEAN.
April’s fall was driven by factory closures and feeble demand. As a result, output and new orders collapsed, with the latter partly caused by a fall in export orders. On the price front, input prices rose firmly amid supply shortages and a weaker rupiah, while output prices increased fractionally, as producers tried to cover higher production costs.
Bernard Aw, principal economist at IHS Markit, commented:
"The survey underscores the unprecedented damage to the Indonesian economy from emergency public health measures to curb the spread of the virus, which has contributed to slumping global demand and shortages of input materials."
Author: Oliver Reynolds, Economist