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Indonesia PMI manufacturing 53.3 in Jul-23

- The Indonesia PMI for manufacturing surged to 53.3 in July 2023, reaching its highest level since September 2022. This suggests a strong expansion in the sector and signifies a sustained recovery.
- The PMI reading of 53.3 is 1.50 points above the one-year average, highlighting a robust performance compared to historical levels. This indicates favorable business conditions and increased investor confidence in the manufacturing sector.

Bank Indonesia: Jul-23

• The Bank Indonesia Board of Governors has maintained the BI7DRR at 5.75%, as expected, in a move consistent with monetary policy stance aimed at controlling inflation and stabilizing the Rupiah amidst global financial market uncertainties.
• The Bank's focus on integrating monetary, macroprudential, and payment system policies seeks to stimulate credit/financing growth, promote economic and financial digital inclusion, and support sustainable economic growth.
• Despite global economic uncertainty, Indonesia's economic growth remains robust, bolstered by strong domestic demand. However, there is a need for robust policy responses to manage the risks posed by changing sources of growth, capital outflows, and global uncertainties.