In Jakarta, Indonesia’s Economic Affairs Minister, Airlangga Hartarto, recently shared some uplifting news regarding the country’s manufacturing industry, which continues to flourish even as global manufacturing sees a downturn. During an economic forum held on May 11, 2024, Hartarto highlighted that Indonesia’s Purchasing Managers’ Index (PMI) for manufacturing has impressively maintained a score of 52.9. This figure not only surpasses that of nearby nations like China and Malaysia, which scored 51.4 and 49.0 respectively, but it also signals a robust expansion in the sector.
Hartarto pointed out an encouraging upward trend in Indonesia’s economic growth, with a 5.11 percent increase year-on-year in the first quarter of 2024, a step up from 5.03 percent in the last quarter. The significant boost, according to him, was fueled by national events such as Eid al-Fitr and the General Elections, which naturally spurred domestic consumption.
Further good news for the Indonesian economy comes with the rise in employment. Hartarto noted that the workforce has grown by 3.5 million people this year, reaching a total of 142.18 million employed individuals. Concurrently, the unemployment rate dropped by 800,000 compared to the end of 2023, indicating a considerable decrease in joblessness. Additionally, the proportion of workers in formal employment has increased, signaling a positive shift towards more secure job opportunities.
Despite these domestic successes, Hartarto cautioned about the ongoing global challenges, such as geopolitical tensions including the conflict in Ukraine and issues in the Middle East. He also mentioned economic stagnation in European countries like France and Germany, which are facing their own set of challenges in the post-pandemic recovery period.
This performance of Indonesia’s manufacturing sector amidst global slowdowns and geopolitical unrest underscores the resilience of the country’s economy and its role as a burgeoning hub for manufacturing in Southeast Asia.
