Industry Minister Agus Gumiwang Kartasasmita proudly announced that Indonesia achieved the highest manufacturing Purchasing Manager’s Index (PMI) in the ASEAN region for February 2025. The PMI surged by 1.7 points from the previous month to reach an impressive 53.6, surpassing not only other ASEAN countries but also global manufacturing powerhouses currently facing contraction phases.
According to data from S&P Global, Indonesia outperformed countries like the United States, Taiwan, the Philippines, China, Thailand, Malaysia, Vietnam, Japan, Myanmar, Germany, and the United Kingdom in manufacturing performance. Minister Kartasasmita attributed this success to the remarkable productivity levels within the domestic manufacturing industry, catering to the demands of the local market.
One key factor in maintaining this upward trend is the implementation of effective import governance policies. Minister Kartasasmita emphasized the importance of safeguarding the domestic market against excessive imports through the issuance of safeguard measures and restrictions. This focus on protecting local industries is crucial for sustaining the growth trajectory witnessed in February.
Entrepreneurial Optimism and Workforce Expansion
Textile entrepreneurs expressed optimism regarding new regulations surrounding import controls on textiles and textile products. These regulations are designed to ensure fair competition in the domestic market and prevent the influx of imported goods engaging in dumping practices. Minister Kartasasmita highlighted the need for similar approaches to be extended to other consumer goods sectors to maintain market fairness and balance.
The period also saw a notable increase in the workforce within the manufacturing industry, with many companies ramping up their production capacity. This surge in employment was the fastest on record, indicating a positive correlation between industry growth and job creation. Minister Kartasasmita underscored the potential for further enhancement of Indonesia’s manufacturing PMI through strategic policy revisions, particularly in import relaxation for key industrial sub-sectors.
Sustainable Policies and Growth Initiatives
Minister Kartasasmita commended the sustainability of the Specific Natural Gas Price (HGBT) policy, a concern addressed by President Prabowo Subianto. The extension of the HGBT policy for seven industrial sectors over the next five years, as outlined in the Minister of Energy and Mineral Resources Decree, is expected to bolster the industry’s stability and performance.
Looking ahead to the holy month of Ramadan, Minister Kartasasmita anticipated continued expansion in Indonesia’s manufacturing PMI. The festive season typically witnesses a surge in consumer spending, particularly on food, beverages, textiles, clothing, and footwear. This uptick in purchasing activity is poised to drive further growth in production and demand during this period.
To further propel the manufacturing industry’s growth, the Ministry of Industry has thrown its weight behind the establishment of the Danantara Investment Management Agency. This initiative aims to stimulate sustainable strategic projects that will foster development within the manufacturing sector. With a focus on downstreaming, digital transformation, and green industry practices, Danantara is poised to make a significant impact on Indonesia’s manufacturing landscape.
In conclusion, Indonesia’s manufacturing sector’s robust performance in February reflects a combination of strategic policies, entrepreneurial optimism, and workforce expansion. By fostering a conducive environment for industry growth and innovation, the country is well-positioned to maintain its upward trajectory in the months to come.
