Ministry Of Finance: The High PMI Manufacturing Of The Republic Of Indonesia In February 2025 Is A Hope For The National Economy

JAKARTA - The Ministry of Finance (Kemenkeu) stated that the high level of Indonesia's manufacturing Purchasing Manager's Index (PMI), which was 53.6 in February 2025 compared to 51.9 in January 2025, is a hope for the national economy.

"Although the global economy and the current geopolitical situation pose a big and difficult challenge, this achievement provides hope for national economic growth," said Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu in Jakarta, quoted by Antara, Tuesday, March 4.

Globally, Indonesia's Manufacturing PMI is the highest after India. This increase was driven by a surge in new orders as well as improved production and purchasing activities.

Nevertheless, Febrio said the government remains anticipatory to changes in global conditions and continues to strengthen policies to support the manufacturing sector and maintain sustainable economic growth.

Apart from manufacturing, domestic consumption indicators are also still showing resilience amid various global challenges.

The Consumer Satisfaction Index (IKK) was recorded at the 127.2 level in January, and is expected to continue to be expansive amid the challenges.

Meanwhile, the Retail Sales Index (IPR) continued to grow 0.4 percent in the same period, reflecting people's purchasing power activities that were still maintained.

These developments provide hope that domestic consumption can still be a pillar in supporting price stability and maintaining consumer confidence in higher economic growth.

In line with the global trend, most countries are also experiencing improvements to PMI even though it is still in the contraction zone. Meanwhile, Indonesia's main trading partner countries recorded expansions, such as in the United States (51.6), China (50.8), and India (57.1), showing global demand remains solid.

However, said Febrio, the uncertainty of the global economy and geopolitical dynamics remains a factor that needs to be watched out for.

Previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita stated that Indonesia's manufacturing PMI was the highest in Southeast Asia (ASEAN).

"Indonesia recorded the highest growth at the ASEAN level. It has even surpassed global manufacturing countries which are currently still experiencing a contraction phase," said Minister of Industry Agus Gumiwang.

According to the Minister of Industry, the increase in the performance of the domestic manufacturing industry was driven by high productivity in an effort to meet domestic market needs.