Indonesia's PMI Manufacturing Index Shows Slight Increase at 2023 Close

Data from S&P Global, reported by the Indonesian Ministry of Industry (Kemenperin), shows that Indonesia's Manufacturing Purchasing Managers' Index (PMI) reached 52.2 points in December 2023.

This achievement is a slight increase of 0.5 points compared to November 2023, which stood at 51.7. Agus Gumiwang Kartasasmita, the Minister of Industry, stated that Indonesia's Manufacturing PMI has remained in the expansion phase for 28 consecutive months.

“Only Indonesia and India have managed to maintain levels above 50 points for more than 25 months. We must maintain and improve this good performance,” said Agus in Jakarta on Tuesday (2/1/2024), as quoted from the Kemenperin website.

(Read also: [link to article about June 2023 achievement])

Quoting S&P Global, Kemenperin stated that the expansion of Indonesia's Manufacturing PMI in the last month of 2023 was due to fairly high demand, including from abroad. According to Kemenperin, this factor drove faster production growth and an increase in the number of workers.

Jingyi Pan, Economics Associate Director of S&P Global Market Intelligence, stated that both new incoming orders and output experienced solid expansion, according to Kemenperin.

This, Kemenperin continued, strengthened purchasing activity and drove continued increases in employment across the goods production sector, supporting further improvement in economic activity.

Kemenperin mentioned that future PMI indicators, including the backlog of orders index and future output, also show a positive trend.

"In particular, overall business confidence rose to its second-highest level in a year, while a slight accumulation of order backlogs reflects improving demand conditions," wrote Kemenperin.

The positive record of Indonesia's Manufacturing PMI at the end of the year is in line with the results of the Industrial Confidence Index (IKI) in December 2023, which reached 51.32 points. The Minister of Industry stated that the IKI achievement has so far been consistently in the expansion phase.

Kemenperin is targeting 5.80% growth in the manufacturing industry in 2024, higher than the 4.81% target in 2023.

(Read also: [link to article about Industrial Confidence Index])