Indonesian domestic manufacturing activity remains active while export performance is weak
It was reported that the increase of new business in Indonesia has continued mildly for six months; nevertheless, the manufacturing output volume declined the very first time in July this year.
The decline of export was suppressed by sluggish demand from foreign buyers recently. The increase numbers of new business somehow uplift the employment level in Indonesia, even though the growth rate was slight and not strong. The depression of export market not merely indicated the low demand from foreign market but also implied the raise of inventory for the manufactures.
Moreover, recent rupiah’s devaluation also augmented the pressures on the importers and manufacture who needed to import raw materials.
