Working Meeting With DPR, Minister Of Industry Agus Conveys The Current Condition Of Indonesian Manufacturing

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the expansionary figures of the manufacturing sector showed various indicator data, including the industrial confidence index (IKI) and the Indonesian manufacturing Purchasing Manager's Index (PMI).

"If we look at IKI, this seems to be in a continuous positive condition, continuous expansion and in August 2025 it was recorded at the level 53.55 and PMI which was just released by S&P Global was recorded at the level of 51.5. This indicates the optimism of business actors towards industrial prospects," Agus said at a Working Meeting with Commission VII at the Parliament Complex, Senayan, Jakarta, Wednesday, September 3.

Meanwhile, when viewed from utilization, the average utilization in the manufacturing sector or the non-oil and gas processing industry (IPNM) from January to July 2025 was recorded at 62.10 percent.

According to Agus, this figure still shows a large amount of space for manufacturing to be able to optimize national production capacity or production capacity in their respective factories.

"The strategy needed is to expand market access both globally and protection of domestic market access, including by strengthening international cooperation and also promoting national products in the world arena," he said.

Meanwhile, the Global Manufacturing Value Added or MVA in 2024 released by the World Bank showed that the value of Indonesia's MVA reached US$265.07 billion over the past year, far beyond the world's average MVA of only US$78.73 billion.

"This achievement puts Indonesia into 15 countries with the highest MVA value and precisely in 2024 we have moved up to 13th position as a country that recorded the world's highest MVA," said Agus.

"Di Asia Tenggara, tentu kami pasti lebih tinggi dari negara-negara lain dan ranking kedua MVA di Asia Tenggara itu diduduki oleh Thailand dan jumlah atau nilai MVA-nya hanya setengah dari jumlah atau nilai MVA yang dicatat oleh Indonesia," sambungnya.

Meskipun di Asia, Indonesia masih tertinggal dari Cina, Jepang, India dan Korea Selatan, Agus meyakini dalam lima sampai sepuluh tahun ke depan bisa melampauinya.

"Kalau kami bisa menerapkan kebijakan-kebijakan tepat untuk sektor manufaktur, kami akan mudah bisa menyusul negara-negara yang tadi saya sampaikan. Ada beberapa negara yang saya sebenarnya sudah hitung akan lebih mudah kami susul," jelas Agus.

"In Southeast Asia, of course we are definitely higher than other countries and the second rank of MVA in Southeast Asia is occupied by Thailand and the amount or value of the MVA is only half the amount or value of the MVA recorded by Indonesia," he continued.

Even though in Asia, Indonesia is still lagging behind China, Japan, India, and South Korea, Agus believes that in the next five to ten years he can surpass it.

"If we can implement the right policies for the manufacturing sector, it will be easy for us to catch up with the countries I said earlier. There are several countries that I have actually calculated that it will be easier for us to follow up," explained Agus.