Indonesia Manufacturing PMI Rises to 53.5 in December Last Year

President Joko Widodo symbolically sent off Indonesia’s export products. Photo by: BPMI of Presidential Secretariat

Indonesia saw its manufacturing purchasing managers’ index (PMI) rise to 53.5 in December last year, according to the IHS Markit survey.

“We applaud the confidence of the manufacturing industry business entities in line with the Government’s commitment to employ various strategic policies in creating a favorable business climate,” Minister of Industry Agus Gumiwang Kartasasmita said in Jakarta, Monday (01/03).

For the record, Indonesia’s Manufacturing PMI surpassed that of ASEAN peers, including Thailand (50.6), the Philippines (51.8), Vietnam (52.2), and Malaysia (52.8), as well as other countries in the likes of South Korea (51.9), Russia (51.6), and China (49.9).

Agus also emphasized that Ministry of Industry remains committed to supporting the downstream industry to increase the added value of natural resources, boost the national economy, create employment opportunities and increase foreign exchange earnings from exports.

According to him, the manufacturing industry has significantly contributed to the national export value, with export value from the manufacturing industry reaching US$ 160 billion or 76.51 percent of total national exports in January to November 2021.

Imports of raw materials and auxiliary materials, are needed to be processed by domestic industry so that they can produce products with a higher value, also climbed by 52.6 percent.

Indicators of the national economic recovery are also reflected in Indonesia’s competitiveness rating, which continues to improve.

Along with improving national economic conditions, Ministry of Industry also aims to achieve the growth target of the manufacturing industry of 4.5 to 5 percent this year.

“We are committed to developing a sovereign, independent, competitive, and inclusive manufacturing industry ” the Minister remarked. (PR Ministry of Industry/UN) (RI/EP)