As of the latest data available, the Indonesian manufacturing sector remains relatively expansive despite the global slowdown. The Manufacturing Purchasing Managers' Index (PMI) for Indonesia stands above 52.9, outperforming countries like China (51.4) and Malaysia (49.0). Minister of Coordinating Economic Affairs Airlangga Hartarto highlighted this during an Economic Seminar, noting Indonesia's PMI and its economic growth rate of 5.11% year on year (yoy) in the first quarter of 2024, attributing part of it to increased domestic consumption during the Eid al-Fitr holiday and the General Elections. Regarding employment, the workforce increased by 3.5 million to 142.18 million people, while unemployment decreased by nearly 800,000 to 7.2 million compared to the end of 2023, with formal employment reaching 40.8%. Minister Hartarto also addressed geopolitical challenges globally, including ongoing conflicts in Ukraine, the Middle East, and economic struggles in Europe post-COVID-19.Looking ahead, the Asian Development Bank (ADB) Director for Indonesia, Jiro Tominaga, emphasized the importance of strengthening the manufacturing industry as a key driver for Indonesia's goal of becoming a developed nation by 2045. He highlighted the need for sustainable economic reforms, green initiatives, and infrastructure development to achieve sustainable long-term economic growth and reduce greenhouse gas emissions.

Minister of Industry Agus Gumiwang Kartasasmita highlighted the significant role of the manufacturing sector in driving economic performance in 2022, with a growth rate of 5.01%, focusing on strategic policies to accelerate national economic growth. The government aims to boost domestic consumption through short-term policies while prioritizing long-term competitiveness and investment in the manufacturing sector, including workforce development. Indonesia's focus on downstream industries spans three main areas: agro-based industries like oleochemicals, mineral-based industries such as mineral smelters, and oil and gas-based industries like coal to methanol projects. With total manufacturing investment reaching IDR 497.7 trillion in 2022 and an estimated workforce absorption of 19.2-20.2 million people in 2023, the government is committed to strengthening downstream industries in manufacturing.

Source: https://validnews.id/ekonomi/pemerintah-klaim-manufaktur-ri-ekspansif-di-tengah-perlambatan-global