Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita said Indonesia's manufacturing Purchasing Manager's Index (PMI) in February 2025, which rose 1.7 points month on month to 53.6, was the highest in the Southeast Asian region.
"Indonesia recorded the highest growth in ASEAN. It even surpassed global manufacturing countries that are currently still experiencing a contraction phase," he informed here on Monday.
Based on data released by S&P Global, Indonesia outperformed ASEAN countries and developed countries, such as the United States (51.6), Taiwan (51.5), the Philippines (51.0), China (50.8), Thailand (50.6), Malaysia (49.7), Vietnam (49.2), Japan (48.9), Myanmar (48.5), Germany (46.1), and the United Kingdom (46.4).
According to Minister Kartasasmita, the increase in the performance of the domestic manufacturing industry was driven by high productivity to meet the needs of the domestic market.
"As the domestic market is still the mainstay, it must be ensured that the onslaught of imports can be eliminated by issuing safeguard policies as well as prohibitions and restrictions to protect the domestic market," he said.
To maintain this performance, the most important effort is the implementation of proper import governance policies to protect the domestic industry, he added. This can also be seen from the optimism of textile entrepreneurs over the new regulations that have been agreed upon regarding import controls on textiles and textile products.
"This policy will create fair play in the domestic market for imported goods suspected of dumping practices. Of course, this optimism will continue if a similar approach is also applied to other downstream commodities that are directly consumed by the public," Kartasasmita said.
He noted that a number of companies that increased their capacity also increased their workforce during the period. The increase in the number of workers in February was the fastest ever recorded in the survey.
"We are sure that Indonesia's manufacturing PMI can be even higher if supported by strategic policies such as revising the import relaxation policy for seven industrial sub-sectors," he said.
The minister also lauded the sustainability of the Specific Natural Gas Price (HGBT) policy for the industry, which has become the concern of President Prabowo Subianto.
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"We thank you, Energy and Mineral Resources Minister Bahlil Lahadalia, for issuing the Decree of the Minister of Energy and Mineral Resources Number 76K/2025 concerning the Extension of HGBT for seven industrial sectors and valid for the next five years," he said.
He added he is confident that Indonesia's manufacturing PMI will remain in an expansion phase in March due to an increase in production and purchasing activity during the holy month of Ramadan.
"Usually, there is a spike in public consumption during the month of Ramadan and Eid, especially in the purchase of food and beverage products, textiles and clothing, and footwear," he said.
To push the growth of the manufacturing industry sector, the Ministry of Industry has also supported the establishment of the Danantara Investment Management Agency, which is expected to spur sustainable strategic projects, including in the development of the manufacturing industry.
"Danantara will have an impact on the progress of the manufacturing industry in Indonesia, with a focus on a number of vital policies, including downstreaming, digital transformation, and green industry," Kartasasmita said.