Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the decline in Indonesia's Purchasing Managers' Index (PMI) was caused by the impact of global trade wars, particularly between the United States and China.
According to him, the conflict has caused global trade shrinkage and has contributed to the slowdown in world economic growth.
"PMI is down because of trade war. So the world trades in syriling (investigation), American growth is also negative. So this is called optimism that is disturbed by trade war," Airlangga told the media crew, Friday, May 2.
Even so, Airlangga is optimistic about Indonesia's economic prospects because the regional area is relatively stable and the government continues to encourage economic cooperation such as the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) and export market diversification efforts.
Airlangga also highlighted the importance of lowering tariffs and trade barriers so that Indonesian products are more competitive in the global market.
"And lower the barrier tariff, because if we go down, the others will also reduce the resipprocal, then our products will be more competitive in the future," he explained.
Responding to the World Bank's projection, which estimates that Indonesia's industrial growth will fall from 5.0 percent to 3.8 percent, Airlangga admits that the trade war plays a role because Indonesia is part of the global supply chain.
"Yes, one of the world's trades between America and China can be relatively stopped until now due to a trade war. Meanwhile, we are part of the supply chain rather than the global market," he said.
Airlangga said that to overcome this, the government is preparing a deregulation to reduce high costs in the manufacturing sector.
SEE ALSO:
"So, we'll just do whatever we have to do in the future so that the costs for manufacturing don't have a high cost," he said.
Airlangga stated that the formation of the Deregulation Task Force (Satgas) will be in the near future.
"Yes, deregulation. Deregulation is underway, the Task Force is in process and in a short time maybe we will launch a package. Yes, we will pack later," he said.
Previously, based on the S&P Global report, Purchasing Managers'Index (PMI) or the Indonesian manufacturing index in April 2025 was at the level of 46.7 (contraction phase). This figure shows a decrease when compared to March 2025 which is at the level of 52.4.
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)
