Minister of Industry Agus Gumiwang Kartasasmita remains optimistic that Indonesia's manufacturing sector can return to an expansionary phase through enhanced coordination and the implementation of pro-industry regulations. He acknowledged that both global economic instability and unfavorable domestic regulations have negatively impacted industrial activity. During the first cabinet meeting held at Ibu Kota Nusantara (IKN), President Joko Widodo expressed concern over Indonesia's Manufacturing Purchasing Manager's Index (PMI), which fell to 49.3 points in July 2024, signaling a contraction after 34 consecutive months of expansion. The President emphasized the importance of addressing this contraction, particularly as several other Asian countries are experiencing similar trends, with the most significant decline observed in output.

Agus highlighted that President Widodo pointed out the high cost of importing raw materials, exacerbated by currency fluctuations and the influx of imported products, as a factor affecting domestic demand. To counter these challenges, the President urged for the increased use of local raw materials, protection of domestic industries, and the exploration of non-traditional markets to expand export opportunities for Indonesian products. Agus believes that the manufacturing sector can recover with pro-business policies, such as ensuring the availability of raw materials for production, maintaining competitive industrial gas prices, and enforcing import substitution measures. He stressed that these policies can only be effective if coordination is properly aligned with regulations and if all stakeholders remain consistent and transparent in their efforts to support the domestic industry.

Source: https://www.antaranews.com/berita/4255451/menperin-optimistis-industri-manufaktur-kembali-ekspansif