Indonesian Manufacturing PMI Increases To 51.2 In October, Minister Of Industry: This Is A Good Signal

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: ANTARA)

JAKARTA - The Indonesian Manufacturing Purchasing Managers' Index (PMI) released by S&P Global recorded an increase from 50.4 in September to 51.2 in October 2025.

This achievement marks an expansion of manufacturing for three consecutive months and shows stability in the growth momentum of the national industry amid global economic pressures.

The Ministry of Industry noted, based on the components forming PMI, new orders (new orders) rose from 51.7 to 52.3.

Meanwhile, the employment rate increased from 50.7 to 51.3.

The increase reflects the increasing market confidence and production capacity of the national industry.

"We have seen an increase in employment at the fastest rate since May 2025. This is a good signal because industrial activity has again encouraged job creation," Agus said in his official statement, quoted on Wednesday, November 5.

Agus added, improving the performance of the national industry amidst global pressure shows that Indonesia's manufacturing sector's resilience is getting stronger.

Even so, the Ministry of Industry acknowledged that there was a slowdown in exports due to weak demand in key markets, such as the United States and Europe.

For this reason, domestic consumption strength is the main motor for national industrial growth.

"The Ministry of Industry also continues to maintain industrial competitiveness through production efficiency, increased added value and upskilling and industrial workforce reskilling programs," he said.

Meanwhile, Agus emphasized that Purchasing Managers' Index (PMI) is not the main guide in reading industrial conditions and formulating industrial policies.

The reason, according to him, PMI only presents macro data and has not explained in detail the performance per industrial sub-sector.

Instead, the Ministry of Industry uses the Industrial Trust Index (IKI) which is considered more comprehensive involving samples from more domestic industries and is more accurate in reflecting national manufacturing performance.

"I want to invite all parties to be careful and wise in using PMI data from S&P Global every month. The monthly PMI issued by the institution is based on less industrial samples than IKI samples," explained Agus.

In addition, Agus is of the view that PMI S&P Global is not yet in detail describing the condition of the industrial sub-sector. In fact, the dynamics of each industrial sub-sector are different.

"The Ministry of Industry uses IKI data (to) read the macro industry situation and formulate policies. PMI data is not our main data in reading the current situation of manufacturing and also policy formulation," he concluded.