Indonesia's manufacturing sector continues to show resilience amid global economic challenges, as indicated by the Purchasing Manager's Index (PMI) for November 2023, released by Standard & Poor's (S&P) Global. The PMI strengthened to 51.7, marking a 0.2-point increase from October 2023, where it stood at 51.5. According to the PMI data, the expansion of Indonesia's manufacturing sector is expected to persist into the fourth quarter of 2023. The increase in production is supported by rising new orders and a growth in the workforce. The heightened demand for new orders has led to increased purchasing activity by manufacturing companies. The report also highlights the general optimism among companies regarding future output in the next 12 months. This positive outlook is driven by expectations of a stronger market condition and more stable prices. Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, noted that the national manufacturing sector's performance toward the end of 2023 remains in the expansion phase, despite global economic pressures. He emphasized that this positive performance, reflected in the PMI for Indonesia's manufacturing sector, has now been sustained for 27 consecutive months.

Minister Gumiwang explained that the improvement in Indonesia's PMI in November 2023 is attributed to a faster increase in production compared to the previous two months. The upswing in production has also contributed to higher employment rates, supported by industrial activities gearing up for year-end preparations, including Christmas and New Year. This indicates a high level of confidence among industry players. Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, emphasized that the November 2023 PMI data indicates continuous expansion in Indonesia's manufacturing sector. She highlighted the rise in new orders for Indonesian manufactured goods, supported by improved demand conditions and an expanding customer base. Pan acknowledged the importance of monitoring signs of a slowdown, although manufacturing companies seem optimistic about improved conditions in the coming months. However, she noted positive news that output growth has accelerated, partly supported by an improvement in the workforce. While cost pressures are intensifying, with input inflation and output prices rising, they have not yet surpassed their respective averages, providing a somewhat reassuring aspect amid the current economic dynamics.

Source: https://www.emitennews.com/news/sp-pmi-manufaktur-indonesia-november-2023-menguat-ke-level-517