Throughout 2022, the manufacturing industry sector in the country is consistently at an expansive level, which is reflected in the achievement of the Indonesian Manufacturing Purchasing Managers' Index (PMI) with a position above 50 points. In December 2022, the Indonesian Manufacturing PMI closed at 50.9 or managed to increase compared to the previous month's acquisition which touched at 50.3.

Based on the results of a survey released by S&P Global, Indonesia's Manufacturing PMI has remained in an expansive phase for 16 consecutive months since September 2021. This positive performance shows that the national manufacturing industry continues to improve and is recovering after being affected by the Covid-19 pandemic and amidst conditions The global economy is uncertain because of the threat of recession
"Alhamdulillah, the results of the Indonesian Manufacturing PMI in December 2022 remain expansive, which is also in accordance with the results of the Industrial Confidence Index (IKI) in December 2022 which we released earlier, which were both at the level of 50.9 and also increased compared to the previous month, ” said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta, Monday (2/1).

Remarkably, Indonesia's Manufacturing PMI in December 2022 was able to surpass Germany's Manufacturing PMI (47.4), Japan (48.8), Australia (50.4), Myanmar (42.1), Netherlands (48.6), France (47 .4), South Korea (48.2), United Kingdom (44.7), United States (46.2), and Eurozone (47.8).
The Minister of Industry is optimistic that the roar of the engines of the manufacturing industry sector in Indonesia will still rumble in the year of the water rabbit. This means that productivity is running well to meet the needs of the domestic and export markets. "We believe that the performance of our manufacturing industry will grow even more in 2023, in line with the various strategic policies being prepared by the government," he said.

The Minister of Industry said that his party was developing a strategy to overcome labor problems in the industrial sector. For example, the textile, footwear and furniture industries are labor-intensive sectors. "we are preparing the stimulus policies, including a limited ban on imports, adjustments to post-border inspections to the border, and flexibility in working hours. That's what we ask to be relaxed, at least until conditions return to normal," he explained.
Besides that, according to Agus, the policy of providing incentives for electric vehicles is in the finalization stage. "This policy was taken to accelerate the development of electricity-based industries in Indonesia. Not only cars, not only motorbikes, but also buses. The condition is one, must have facilities. It means, he must have a factory in Indonesia," he said.
In fact, Agus estimates, the realization of investment and export contribution in the industrial sector will still grow significantly. This optimism has an impact on employment amid the current condition of declining global orders. "The entry of a number of investments in several sectors is expected to boost national economic growth," he said.

Investment realization from the manufacturing industry is expected to reach IDR 450 to 470 trillion in 2023, up 7 percent compared to this year's projected IDR 439.33 trillion. "At the same time, the export value of the non-oil and gas processing industry in 2022 is projected to reach USD 210.38 billion, and in 2023 it is targeted to be USD 225-245 billion," said the Minister of Industry
In addition, increased investment in the industrial sector will also boost labor absorption. In 2022, total employment is estimated to reach 19.11 million people, while in 2023 there will be 19.2-20.2 million people.
"Therefore, the government is determined to strengthen downstream in the manufacturing industry sector. This is because so far it has provided clear evidence of a multiplier effect on the national economy, including increasing the added value of domestic raw materials, attracting investment in the country, generating large foreign exchange from exports, and increasing the amount of labor absorption," said the Minister of Industry.
Responding to the results of the Indonesian Manufacturing PMI in December 2022, Jingyi Pan as Economics Associate Director of S&P Global Market Intelligence said that the manufacturing sector in Indonesia PMI is heading for better conditions. The improvement in the manufacturing sector is due to an increase in demand that supports increased production. It also hoists purchasing activity and also job creation.

"Faster expansion in output and sales as well as reduced price pressures are expected improvements," said Jingyi. In the report, Indonesia's manufacturing production experienced a faster expansion in December. This was driven by increased demand for goods produced in Indonesia. These demand conditions led to an increase in new orders in December.

Source: https://www.antaranews.com/berita/3333111/industri-manufaktur-ri-tercatat-ekspansif-sepanjang-2022