Manufacturing PMI March 2024 Capai 54.2, Minister Of Industry Agus Gumiwang: Highest Level Over The Last 2.5 Years

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

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the Indonesian Manufacturing Purchasing Manager's Index (PMI) in March 2024 was at its highest level for the last 2.5 years.

This index was obtained from the S&P Global report which noted that the Manufacturing PMI in March 2024 was at the level of 54.2 or an increase of 1.5 points compared to the achievement in February which touched 52.7.

"Indonesia's manufacturing sector is in an expansive position for 31 consecutive months. This is also in line with the achievement of the Industrial Trust Index (IKI) in March which is both in an expansion phase with a level of 53.05," said Minister of Industry Agus in a written statement received by VOI, Tuesday, April 2.

Minister of Industry Agus said that the performance of Indonesia's manufacturing PMI in March 2024 was better than the manufacturing PMI of other countries which were still in the contraction phase, such as Malaysia 48.4, Thailand 49.1, Vietnam 49.9, Japan 48.2, South Korea 49.3, Germany 41.6, France 45.8 and the UK at 49.9.

Agus assessed that to continue to increase economic value and improve the performance of the manufacturing sector, strategic policy support is needed, such as the implementation of Certain Natural Gas Prices (HGBT) in all industrial sectors.

"If all industrial sectors can get competitive gas prices, of course, they will provide a multiplier effect for the national economy and boost the competitiveness of our industrial products. We are also optimistic that Indonesia's manufacturing PMI can be even higher if the HGBT program runs well and is accessed by all industries," he said.

Based on data from the Ministry of Industry, Agus said, the HGBT policy was greatly benefited by business actors. As in 2023, the increase in taxes from the HGBT user industry increased by 32 percent compared to 2019.

The Ministry of Industry also noted that investment realized of IDR 41 trillion in 2023 and the potential for investment in the petrochemical, steel, ceramic and glass sectors of IDR 225 trillion.

In addition, another positive impact during 2020 to 2023 was an increase in exports of IDR 84.98 trillion, an increase in tax revenues of IDR 27.81 trillion, an increase in investment of IDR 31.06 trillion and a decrease in fertilizer subsidies of IDR 13.3 trillion.

"What must be considered is that HGBT has been able to increase APBN's revenue. Each expenditure of Rp. 1 is able to provide a replacement income for the state of Rp. 3," he said.

Meanwhile, the Economist of the Institute for Economic and Community Research, Faculty of Economics and Business (LPEM FEB) University of Indonesia, Kiki Verico, stated that currently Indonesia is not in the deindustrialization phase. This is because the Indonesian manufacturing industry continues to experience positive growth.

Therefore, he said other ministries need to support the steps that have been carried out by the Ministry of Industry in order to strengthen the manufacturing industry sector.

"So, how do we attract incoming investment and then increase exports. Now, here the role of the Ministry of Industry together with the Ministry of Trade and the Ministry of Investment (BKPM) must be harmonious, including policies. Do not let policies in industry support industry, while trade and investment will not be a hassle," he said.