PMI Expansive Manufacturing To 51.5 In August, Minister Of Industry Reminds Industry Needs A Conducive Climate

Minister of Industry Agus Gumiwang Kartasasmita (Photo: dock. VOI)

JAKARTA - S&P Global released data on Indonesia's Manufacturing Purchasing Managers Index (PMI) in August 2025 which grew by 51.5 or rose by 2.3 points from July which was at the level of 49.2. The increase returned to its position in the expansion phase after four consecutive months of contraction.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the surge in Indonesia's manufacturing PMI showed that industry players' confidence was getting higher in running their business.

This is proof of the resilience of the domestic manufacturing industry in the midst of the dynamics of the national and global economy. Moreover, the non-oil and gas processing sector faces many challenges from within the country and globally.

"We welcome the PMI manufacturing report this August which shows the recovery in national manufacturing performance. This increase is driven by the increase in new orders, both from the domestic market and exports and also increasing activity in production," Agus said in a written statement, Monday, September 1.

Technically, PMI's strengthening in August 2025 was mainly supported by the increase in new orders (new orders) which jumped from 48.3 in July to 52.3 or an increase of 4.0 points. The surge was also supported by the growth of new export orders which rose 2.8 points to 51.2, indicating an increase in demand from the global market.

Production activity (output/activity) also increased significantly from 49.0 to 52.6 or an increase of 3.6 points, so that industrial production capacity returned to an expansive level.

The company also added labor, as reflected in the employment index which rose to 50.4 and increased raw material purchasing activities, with the quality of purchasing up 3.1 points to 51.6.

Another improvement can be seen in stocking of purchasings which increased 2.2 points to 51.1 and improved delivery times of suppliers (supply delivery times) which rose to 50.0. This combination of key variables prompted Indonesian manufacturing PMIs to penetrate the expansionary phase again in August 2025.

However, Agus reminded that the continuation of the positive trend of the manufacturing industry is closely related to national stability. Industry needs conducive conditions in carrying out its operations.

"It is feared that the situation leading to destabilization, treason or riots will reduce the level of optimism of industry players," he stressed.

According to Agus, manufacturing is different from other sectors because it has a broad and sensitive ecosystem. Manufacturing involves many activities, ranging from forward links; reward links; investment; UMR; raw materials; logistics; to energy resources that must be maintained everything so that optimism continues to grow.

He said that the manufacturing PMI was never used as a benchmark by the Ministry of Industry as the basis for analyzing field conditions, but was only seen as one of the additional indicators to complete the analysis.

"For us, IKI is much more representative because it involves larger respondents, which is 2,5003,000 industrial companies out of 23 sub-sectors," he said.

Indonesian manufacturing PMI in August 2025 was able to surpass French manufacturing PMI (49.9); Germany (49.9); Japan (49.9); Myanmar (50.4); Philippines (50.8); South Korea (48.3); Taiwan (47.4); UK (47.3); and China (50.5).

Furthermore, Agus said, the increase was also a positive signal that the manufacturing industry sector remained resilient and was able to become a driving force for the national economy.

"We are committed to realizing the direction of President Prabowo, Indonesia will grow into a strong industrial country and not inferior to other countries. The spirit conveyed by the President is a new direction and energy for all of us," he concluded.