JAKARTA - The Purchasing Managers' Index (PMI) report from S&P Global released today, Friday, August 1, shows Indonesia's manufacturing PMI was in 49.2 in July 2025 or contracted.
The July 2025 data confirms that the Indonesian manufacturing PMI has contracted for four consecutive months. It was recorded that PMI in April 2025 was at the level of 46.7, then 47.4 in May, continuing in June (46.9) and July (49.2).
Related to this, Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif assessed that the domestic industrial sector was starting to rise. Moreover, Indonesia's manufacturing PMI in July 2025 was able to surpass the Japanese manufacturing PMI (48.8), France (48.4), England (48.2), South Korea (48.0) and Taiwan (46.2).
"This improvement in PMI figures is a reflection of the improving sentiment of industry players in recent weeks. PMI has increased because in recent weeks there have been policy dynamics that make industry players more optimistic," said Febri in a written statement, Friday, August 1.
According to Febri, the optimism of domestic industry players was driven by a tariff agreement between Indonesia and the United States.
"Thanks to Mr. President Prabowo's expertise in negotiating, Indonesia has succeeded in obtaining more profitable rates compared to competing countries. This is an important capital for increasing the competitiveness of the national industry," he said.
Even so, Febri emphasized that his party had never used the results of the manufacturing PMI as a basis for analysis or policy formulation.
"We appreciate the results of the PMI survey as a general reference. However, in formulating policies, the Ministry of Industry uses the Industrial Trust Index (IKI). The number of industrial companies that are sampled is an average of 3,100 companies, while the PMI S&P Global survey is not more than 500 industrial companies," explained Febri.
"With IKI, we are aware of the performance of each non-oil and gas processing industry sub-sector," he continued.
Febri explained that IKI was compiled based on a direct survey of industry players from 23 manufacturing sub-sectors, including aspects of production, export and domestic demand, capacity utilization, labor to future business expectations.
It is stated that IKI is more representative for policy interests because it is based on primary data and is analyzed in the context of national needs, not merely following global indicators such as PMI.
"IKI is much more comprehensive because it involves more respondents and we complement it with export and domestic IKI data as well as an in-depth analysis of trends and actual challenges in the field," he said.
"The IKI indicator also reflects that the condition of the industry is more representative nationally because it involves a larger number of respondents and a detailed sectoral approach," he continued.
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Previously, the Ministry of Industry noted that the Industrial Trust Index (IKI) in July 2025 reached 52.89 points. This figure is up 1.05 points from IKI in June 2025 which was recorded at 51.84.
"IKI in July 2025 reached 52.89, still expansionary with an increase of 1.05 points compared to June 2025 which amounted to 51.84," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the release of IKI July 2025 at the Ministry of Industry Building, Jakarta, Thursday, July 31.
In addition, when compared to IKI in June last year at 52.40, the amount of IKI July 2025 also increased by 0.49 points, namely at 52.89.
Febri added, this July there were 22 sub-sectors experiencing expansion. The contribution of 22 sub-sectors to gross domestic product (GDP) was 99.9 percent.
In other words, IKI sub-sectors with expansive status are the largest contributors to their GDP.
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