Indonesian Manufacturing PMI Strengthens Expansively To 51.2, Minister Of Industry Agus: Unexpectedly

Minister of Industry Agus Gumiwang Kartasasmita (Photo: dock. VOI)

JAKARTA - The Indonesian Manufacturing Purchasing Manager's Index (PMI) in December 2024 managed to rebound and again recorded an expansionary level at 51.2, after previously being at the contraction level of 49.6 in November 2024.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the increase in PMI was a good start in 2025.

"We started from PMI which was unexpected, once again beyond expectations. It was an extraordinary increase," Agus said at the Ministry of Industry's office, Jakarta, Friday, January 3.

Agus assessed that the increase in PMI has shown the toughness of the Indonesian manufacturing sector in the midst of many regulations that have depressed the industrial sector.

"Once again proven, once again proven. When COVID-19 is proven, now it has also been proven without any regulations that can make the manufacturing sector better," he said.

According to Agus, Indonesia's manufacturing performance can grow even higher if it is supported by regulations that are needed by the sector.

"Without the regulations that we need PMI will also increase. Moreover, if the regulations needed by the industry can be prepared, I am sure the industry will fly," he concluded.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said that entering early 2025, the performance of the national economy continued to bring optimism. This increase was driven by the increase in new orders, both domestically and exports, as well as the increase in the purchasing activities of raw materials by the company.

In addition, Airlangga said Indonesia's inflation rate in December 2024 remained under control in the national target range of 2.5 percent plus minus 1 percent. Inflation in December 2024 was recorded at 1.57 percent (yoy), lower than inflation in December 2023 at 2.61 percent.

"The controlled inflation and expansive PMI show that the business world remains optimistic about the national economic conditions ahead," said Airlangga in his statement, Friday, January 3.

He considered that this was also reflected in the outlook for the World Bank in December 2024 which projects that the Indonesian economy will grow 5.1 percent in 2024 and 5.2 percent in 2025.

"This condition also reflects the positive prospects of the manufacturing sector, with many companies preparing to face increased demand in 2025," he said.