Heaptalk, Jakarta — The optimism of the Minister of Industry Agus Gumiwang Kartasasmita regarding the growth of Indonesia’s manufacturing industry is proven by the industry’s positive result in productivity growth. According to S&P Global’s report, Indonesia’s manufacturing Purchasing Manager’s Index (PMI) was at level 54.2 in March 2024,, an increase of 1.5 points compared to February’s attainment of 52.7.
“Indonesia’s manufacturing sector has been in an expansionary position for 31 consecutive months. This is also in line with the achievements of the Industrial Confidence Index (IKI) in March, which was both in the expansion phase, with a level of 53.05,” said Minister Agus in a press release some time ago.
Indonesia’s manufacturing PMI in March 2024 was better than that of other countries who are still in the contraction phase, such as Malaysia (48.4), Thailand (49.1), Vietnam (49.9), Japan (48.2), South Korea (49.3), Germany (41.6), France (45.8), and England (49.9). Agus said, “The excellent performance of the industrial sector in recent years has not been without obstacles. One of them is the issue of natural gas prices. The authority for natural gas lies with the Ministry of Energy and Mineral Resources.”
According to Agus, the manufacturing industry needs strategic policy support, such as implementing specific natural gas prices (HGBT) for all industrial sectors. “If all industrial sectors can obtain competitive gas prices, it will surely have a multiplier effect on the national economy and boost the competitiveness of our industrial products. We are also optimistic that Indonesia’s Manufacturing PMI can be even higher if the HGBT program runs well and is accessed by all industries,” he explained.
Based on data from the Ministry of Industry (Kemenperin), the HGBT policy has brought multiple benefits for business actors. In 2023, the tax increase from HGBT user industries reached 32% compared to 2019. In addition, up to 2023, an investment of Rp41 trillion has been realized, a rise of 34% compared to 2019.
“The industrial sector, especially gas users as raw materials and energy, requires sufficient supply and competitive prices in the long term. For this reason, the Ministry of Industry views the significance of more comprehensive regulations to provide space for the industrial sector to optimize production,” Agus concluded.
