Positive Impact of Supply Chain Disruption

The disruption has forced businesses to rethink or transform their global supply chain models and learn to respond to unpredictable conditions. Resilience is the key.

KOMPAS/AGUS SUSANTO

Container loading and unloading activities at Tanjung Priok Port, North Jakarta, Thursday (23/9/2021). The Central Statistics Agency noted that Indonesia's non-oil and gas exports in January-August 2021 amounted to USD 134.132 billion, growing 37.03 percent on an annual basis.

Although its impact has been devastating, the global supply chain disruption has also had a positive effect on the economy as many domestic industries have turned to local raw material suppliers. (Kompas, 13/12/2021)

Data from Statistics Indonesia (BPS) showed that the recovery of the domestic downstream industry in recent months was also accompanied by the strengthening in the upstream and intermediate sectors. This strengthening occurred in line with the impressive expansion of the domestic manufacturing industry during the pandemic, as shown by the increase in the Manufacturing Purchasing Managers' Index (PMI) issued by IHS Markit in November 2021. Indonesia’s PMI rose to 53.9 in the month, the most expansive in ASEAN countries.