JAKARTA Indonesia's Manufacturing PMI Index in February 2025 increased to a level of 53.6 compared to January at the level of 51.9.
Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said that the Indonesian Manufacturing PMI Index continues to show positive and highest trends in the last 11 months.
According to him, Indonesia's Manufacturing PMI globally is the highest after India, where this increase is driven by a surge in new orders, as well as improved production and purchasing activities.
"Although the global economy and the current geopolitical situation pose big and difficult to predict, this achievement provides hope for national economic growth. The government remains anticipatory to changes in global conditions and continues to strengthen policies to support the manufacturing sector and maintain sustainable economic growth," he said in his statement, Tuesday, March 4.
In addition to manufacturing, domestic consumption indicators are also still showing resilience amid various global challenges as reflected in the Consumer Satisfaction Index (IKK) which 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.
Febrio said this development gave hope that domestic consumption could still be a pillar in supporting price stability and maintaining consumer confidence in higher economic growth.
According to him, in line with global trends, 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, Febrio said that global economic uncertainty and geopolitical dynamics remain a factor that needs to be watched out for.
As for February 2025, there was a deflation of 0.09 percent (yoy), mostly influenced by the 50 percent electricity tariff discount program in January and February 2025.
The electricity tariff discount given will lead to a low inflation rate in the next few months. This program is part of a series of economic stimulus policy packages given to maintain people's purchasing power," he continued.
Febrio conveyed that the electricity tariff discount program policy had an impact on the deflation trend of the Administered Price component where in February, this component experienced a deflation of 9.02 percent (yoy), and inflation was still recorded at the PAM drinking water and cigarette rates.
For the core inflation component, Febrio said the strengthening trend continued to reach 2.48 percent (yoy) driven by private and recreational care groups.
According to him, the development of core inflation is expected to be a maintained signal of purchasing power.
Meanwhile, the volatile food inflation component began to slope, which was influenced by food prices that were continuously under control, reaching 0.56 percent (yoy).
Febrio said that food inflation is expected to continue to be stable as the rice harvest begins and increases in horticultural production.
SEE ALSO:
He emphasized that the government continues to be committed to implementing various policies to ensure the affordability of food prices during the Ramadan period, such as market operations, low-cost market movements, as well as facilitation and distribution supervision.
In addition, according to him, along with the entry of the rice harvest season, the government will also continue to maintain the level of grain prices to improve the welfare of farmers.
According to him, to support people's purchasing power for transportation needs, incentives such as discounted toll rates and VAT on aircraft tickets are given at the momentum of Ramadan and Eid al-Fitr this year.
"This policy is expected to make it easier for the community to be able to gather with their families to celebrate Eid al-Fitr, in addition to having a positive impact on economic growth," he said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
