Good News from Minister of Industry! Indonesia's Manufacturing PMI Rises Again, Surpassing China and the US

INDUSTRY.co.id - Jakarta, Manufacturing industrial activity in the country is increasingly growing despite unstable global economic pressures. This is indicated by the achievement of the Indonesian Manufacturing Purchasing Manager's Index (PMI) released by S&P Global, which in November 2023 strengthened to level 51.7 or an increase of 0.2 points from October 2023 which was in position 51.5.

Where the Indonesian manufacturing PMI in November 2023 will be able to exceed the ASEAN manufacturing PMI (50.0), as well as ASEAN countries such as Thailand (47.6), Malaysia (47.9), Vietnam (47.3), and Myanmar (48 ,1). Apart from that, it is also higher than the PMI of China (50.7), Eurozone (43.8), Germany (42.3), Japan (48.3), Netherlands (44.9), South Korea (50.0 ), Taiwan (48.3), United Kingdom (46.7), and United States (49.4) According to PMI data, the expansion of Indonesia's manufacturing sector will last until the fourth quarter - 2023.

The increase in production is supported by an increase in new orders and an increase in the number of workers. Fulfilling new demands increases purchasing activity by manufacturing companies. It was also stated that the company was generally optimistic that output in the next 12 months would increase, amidst hopes of stronger market conditions and more stable prices.

"The performance of the national manufacturing industry sector towards the end of 2023 is still in the expansion phase, even though it is under pressure from global economic conditions. "This also means that this positive achievement (Indonesian Manufacturing PMI) lasted for 27 consecutive months," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in Jakarta, Friday (1/12).

The Minister of Industry explained that Indonesia's manufacturing PMI began to improve in November 2023 due to a faster increase in production compared to the previous two months. The increase in production numbers also increases labor absorption. Moreover, it is supported by industrial activities to prepare for the end of the year which includes Christmas and New Year.

"This also indicates that the level of self-confidence of our industry players is still high," he said. Economics Associate Director of S&P Global Market Intelligence Jingyi Pan said that PMI data for November 2023 shows that Indonesia's manufacturing sector continues to expand.

"Incoming new orders for Indonesian-produced goods will increase again in November 2023. This is supported by improving demand conditions and expansion of the customer base," he explained.

Pan said it was important to watch for signs of a slowdown, although manufacturing companies seemed optimistic that conditions would improve in the coming months. However, the good news is that output growth is accelerating, supported in part by improvements in the number of workers. "While price pressures are intensifying, the inflation rates of input costs and output prices have still not exceeded their respective averages," he stressed.