Indonesian Manufacturing PMI Capai 50.9 In December 2022, Minister Of Industry: Alhamdulillah, It Remains Expansive

Minister of Industry, Agus Gumiwang Kartasasmita. (Photo: Doc. Kemenperin)

JAKARTA - Closing 2022, the manufacturing sector in the country is consistently at an expansive level, as reflected in the achievement of the Indonesian Manufacturing Purchasing Managers' Index (PMI) at the level of 50.9 in December 2022.

This figure has increased from the manufacturing PMI in November 2022, which is at 50.3. As is known, the index above 50 indicates an expansion position, while below the line means contraction.

Based on the results of a survey released by S&P Global, Indonesian Manufacturing PMI has remained in an expansive phase for 16 consecutive months since September 2021.

This positive performance shows that the national manufacturing industry continues to improve and recovers after being affected by the COVID-19 pandemic and in the midst of uncertain global economic conditions.

"Alhamdulillah, the achievements of Indonesia's Manufacturing PMI in December 2022 remain expansive, in accordance with the achievements of the Industrial Trust Index (IKI) in December 2022 which we have previously released, namely both at the level of 50.9 and also increasing compared to the previous month," said Industry Minister Agus Gumiwang Kartasasmita in a written statement, Tuesday, January 3.

Agus is also optimistic that the engine mix in the manufacturing industry sector in Indonesia will still roar this year. This means that productivity is running well to meet the needs of the domestic market and exports.

"We believe that the performance of the manufacturing industry (Indonesia) will continue to grow in 2023, along with various strategic policies that are being prepared by the government," he said.

He also said that his party was preparing a strategy to overcome labor problems in the industrial sector, such as the textile, footwear, and furniture industry, which is a labor-intensive sector.

"We are preparing a stimulus policy, including a limited import ban, adjustment of post border checks to border, and flexibility of working hours. That's what we ask to be relaxed, at least until normal conditions," said Agus.

In addition, according to Agus, the policy of providing incentives for electric vehicles is in the finalization stage. This policy was taken to encourage acceleration in the development of electricity-based industries in Indonesia.

"Not only cars, not only motorbikes, but also buses. The condition is that one must have facilities. This means that he must have a factory in Indonesia," he said.

Furthermore, Agus said, the realization of investment from the manufacturing industry is estimated to reach IDR 450 to 470 trillion this year, an increase of seven percent compared to last year's projected IDR 439.33 trillion.

"Along with that, the export value of the non-oil and gas processing industry in 2022 is projected to reach 210.38 billion US dollars and in 2023 it is targeted at 225-245 billion US dollars," he said.

Later, the increase in investment in the industrial sector is expected to boost labor absorption. In 2022, the total labor absorption is estimated to reach 19.11 million people, while in 2023 there will be 19.2-20.2 million people.

For your information, Indonesia's Manufacturing PMI in December 2022 was able to surpass the German Manufacturing PMI (47.4), Japan (48.8), Australia (50.4), Myanmar (42.1), the Netherlands (48.6), France (47.4), South Korea (48.2), England (44.7), the United States (46.2), and the European Zone (47.8).