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.
PMI uses the number 50 as the starting point. If it's above 50, it means that the business world is in an expansive phase. While below that number means contraction.
The Ministry of Industry (Kemenperin) actually reported an increase in the Industrial Trust Index (IKI), which was 52.89 points in July 2025.
It is known that the Purchasing Managers Index (PMI) is an economic indicator that monitors the passion of the manufacturing sector of a country.
So, how did the Ministry of Industry respond to the differences in the survey results?
Spokesperson for the Ministry of Industry Febri Hendri Antoni Arief explained that the difference was mainly caused by the number and coverage of respondents in each survey.
"We believe that the number of IKI samples is greater than the number of samples from industrial companies in the PMI survey," Febri told reporters after the release of IKI July 2025 at the Ministry of Industry Building, Jakarta, quoted Friday, August 1.
Febri assessed that IKI developed by the Ministry of Industry involved around 3,600 industrial companies, with deeper details because the data could be grouped per sub-sector.
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Meanwhile, the PMI survey conducted by S&P Global only relied on 300 respondents, without further distribution of sub-sectors.
"We believe that IKI reflects more the performance of national manufacturing than PMI," he said.
Based on IKI data so far, Febri claims, Indonesia's manufacturing industry has never contracted.
This shows that the Indonesian manufacturing sector is still in a positive trend, despite facing global economic pressure.
"Yes (not contracting). So far, from IKI's calculations, Indonesia's manufacturing industry has never experienced a contraction," he concluded.
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