Heaptalk, Jakarta — Indonesia’s manufacturing industry continues to exhibit remarkable resilience as it enters 2025, particularly in the first quarter. This is evidenced by the country’s Manufacturing Purchasing Managers’ Index (PMI), released by S&P Global, which surged to 53.6 in February—marking a significant 1.7-point increase from January’s 51.9.
A PMI above 50 signifies expansion, and Indonesia’s February PMI reflects the highest expansion level recorded in the past 11 months. This positive trend aligns with the Industry Confidence Index (IKI) the Ministry of Industry reported earlier, which stood at 53.15 in February 2025, a 0.05-point rise from January and a 0.59-point increase from the previous year.
“As seen in January 2025, February’s Manufacturing PMI and the Industry Confidence Index remain in the expansionary phase. This indicates that the manufacturing sector continues to thrive with considerable optimism at the start of the year,” stated Minister of Industry Agus Gumiwang Kartasasmita in an official statement in Jakarta on Monday (03/03).
The Minister elaborated that Indonesia’s manufacturing sector maintains confidence despite prevailing global economic and political uncertainties. This reflects a favorable business climate in Indonesia, supported by government regulations to boost productivity and industrial competitiveness.
“With a combination of strategic initiatives and continuous innovations by industry players, along with sustained government support, we are optimistic that the manufacturing sector will continue its upward trajectory, contributing positively to national economic growth,” he affirmed.
The robust performance of the manufacturing industry is primarily driven by heightened productivity to meet growing domestic market demand. “Since the domestic market remains a strong pillar, it is imperative to curb import surges by implementing safeguard measures, import restrictions, and other regulatory frameworks to protect local industries,” the Minister emphasized.
He further noted that a well-regulated import governance policy shields domestic industries. Optimism is also palpable among textile entrepreneurs following the approval of a new Ministerial Regulation on import control for textiles and textile products. “This policy will ensure a level playing field in the domestic market by addressing allegations of dumping practices. This optimism can be sustained if similar measures are extended to other downstream commodities directly consumed by the public,” Agus remarked.
Several companies have increased their production capacity, subsequently expanding their workforce. The surge in employment in February was reportedly the fastest recorded in this survey’s history.
“Manufacturing remains a cornerstone of national economic growth, contributing the largest share to GDP. We believe Indonesia’s Manufacturing PMI can climb even higher with strategic policy adjustments, such as revising import relaxation policies for seven key industrial subsectors,” the Minister concluded.
