Indonesian Manufacturing PMI Rises, Minister Of Industry: Lasts Up To 27 Months In A Row

JAKARTA - Manufacturing industry activities in Indonesia began to rise in November 2023 after collapsing within the previous two months.

This is marked by the achievement of the Indonesian Manufacturing Purchasing Managers' Index (PMI) released by S&P Global on Friday, December 1.

Indonesian Manufacturing PMI slightly rose to 51.7. This figure increased by 0.2 points from the PMI index which fell to 51.5 in October 2023.

Indonesian manufacturing PMIs have been in an expansive phase for 27 consecutive months. PMI itself uses 50 as the starting point. If it's above 50, it means that the business world is in an expansion phase. Meanwhile, below that number, there is a contraction.

"The performance of the national manufacturing industry sector towards the end of 2023 is still in the expansion phase, despite the pressure from global economic conditions," said Minister of Industry (Memperin) Agus Gumiwang Kartasasmita in a press release, Saturday, December 2.

Minister of Industry Agus said manufacturing industry activities in the country began to stretch even in the midst of unstable global economic pressure conditions.

"This means that the positive achievement (Indonesian Manufacturing PMI) lasts up to 27 consecutive months," he said.

Agus explained that Indonesia's manufacturing PMI began to improve in November 2023 due to a faster increase in production than the previous two months.

The increase in production also adds to the absorption of labor. Moreover, it is supported by industrial activities to prepare for Christmas and New Year's (Nataru) momentum.

"This also indicates that the level of confidence from our industry players is still high," said Agus.

The Economics Associate Director of S&P Global Market Intelligence Jingyi Pan said PMI data November 2023 showed that Indonesia's manufacturing sector continues to expand.

"New orders to come for Indonesia's production goods will rise again in November 2023. This is supported by improvements in demand conditions and customer base expansion," said Agus.

It is known that Indonesian manufacturing PMI in November 2023 was able to surpass ASEAN manufacturing PMI (50.0), as well as ASEAN countries, such as Thailand (47.6), Malaysia (47.9), Vietnam (47.3), and Myanmar (48.1).

In addition, it is also higher than China's PMI (50.7), the European Zone (43.8), Germany (42.3), Japan (48.3), the Netherlands (44.9), South Korea (50.0), Taiwan (48.3), England (46.7), and the United States (49.4).