The Minister of Industry, Agus Gumiwang Kartasasmita, cites Indonesia's business climate as still conducive despite the global economic slowdown, evident in the growing manufacturing industry's activities. In Q3 2023, the manufacturing sector contributed significantly, at 18.75% to the national Gross Domestic Product (GDP), playing a vital role in bolstering the national economic growth. Manufacturing registered a growth of 5.20% (YoY) in Q3 2023, surpassing the overall economic growth of 4.94% in the same period. Regarding investment data, the manufacturing industry accounts for 40% of the total, and its contribution to national exports reaches 73%. Minister Agus assures that Indonesia is not undergoing deindustrialization, highlighting the Industrial Confidence Index (ICI) released by the Ministry of Industry in November 2023, reaching 52.43—a 1.73-point increase from October 2023. The ICI, consistently above 50 since November 2022, signifies an expansion phase. Correspondingly, the Purchasing Managers Index (PMI) for Indonesian manufacturing remained above 50 for the past 27 consecutive months, indicating an expansion phase.
This accomplishment, surpassing 25 months in the expansion stage, aligns with only two countries globally, Indonesia and India, sustaining PMI above 50 for 25 consecutive months, exceeding other industrial nations like China, Japan, Korea, and the United States. S&P Global reported Indonesia's Manufacturing PMI in November 2023 strengthened to 51.7, up by 0.2 points from October 2023 at 51.5. Minister Agus aspires to further enhance the manufacturing sector's performance, aiming to restore its contribution to national GDP to 20%. The Ministry of Industry commits to fostering a robust and sustainable national industry, emphasizing practices embracing Environmental, Social, Corporate Governance (ESG) principles crucial in achieving Sustainable Development Goals (SDGs). Developing sustainable performance and expanding ESG policies aim to enhance investor attraction, especially in the industrial sector, showcasing resilience and adaptability amidst challenges. The initiative underlines Indonesia's capability to withstand difficulties and adapt continuously. The Ministry's collaborative efforts with stakeholders aim to solidify Indonesia's industrial resilience, creating a more appealing investment climate.
Source: https://nasional.kontan.co.id/news/kontribusi-industri-manufaktur-terhadap-pdb-capai-1875
