Towards The End Of 2023, Manufacturing PMI Rises To 51.7 Positions

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - The activities of the manufacturing industry in the country towards the end of the year are increasingly stretched, marked by the achievement of the Indonesian Manufacturing Purchasing Manager's Index (PMI) in November which rose to 51.7 or an increase of 0.2 points from October 2023 which was at 51.5.

"The performance of the national manufacturing industry sector towards the end of 2023 is still in the expansion phase, even though it is under pressure from global economic conditions. This means that this positive achievement (Indonesian Manufacturing PMI) lasts up to 27 consecutive months," said Industry Minister Agus Gumiwang Kartasasmita, quoted from ANTARA, Friday, December 1.

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 the end of the year which include Christmas and New Year.

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

According to PMI data, Indonesia's manufacturing sector expansion lasted until the fourth quarter of 2023.

The increase in production is supported by an increase in new demand and an increase in the number of workers.

Fulfillment of new requests increases purchasing activities by manufacturing companies.

It was also stated that the company is generally optimistic that the output in the next 12 months will increase, amid hopes of a stronger market condition and a more stable price.

On the same occasion, 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," he explained.

He considered it very important to observe signs of slowdown, although manufacturing companies seem optimistic that conditions will improve in the months to come.

However, the good news is that output growth has accelerated with some supported by improvements in the number of workers.

"While price pressures are getting more intensive, the inflation rate of input costs and output prices have not exceeded their respective averages," he said.

The Indonesian manufacturing PMI in November 2023 was able to surpass the 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).