Purbaya's Deputy: Indonesia's Manufacturing Sector Remains Expansive
JAKARTA, KOMPAS.com - The performance of Indonesia’s manufacturing sector continues to show resilience amid global pressures.
Although slowing, the Manufacturing Purchasing Managers’ Index (PMI) for March 2026 remains in expansion territory at 50.1.
This figure is down from February’s 53.8, in line with weakening new orders and exports, as well as rising input costs due to higher energy prices and global supply chain disruptions.
Director General of Economic and Fiscal Strategy at the Ministry of Finance, Febrio Kacaribu, emphasised that despite various pressures, the fundamentals of the national manufacturing industry remain intact.
He explained that pressures on the manufacturing sector are influenced by escalating global geopolitics, rising energy prices, and international supply chain disruptions.
Nevertheless, industrial activity continues to hold in expansion territory.
Several countries such as Vietnam, Thailand, India, and the United States still record manufacturing PMIs in expansion territory, providing positive signals for global demand.
Meanwhile, domestically, domestic demand remains the main pillar of support.
This is reflected in the Real Sales Index (IPR) for February 2026, which grew 6.9 percent year-on-year, driven by Ramadan and Eid al-Fitr momentum.
Real sector activity also shows positive trends, including car sales growing 12.2 percent, cement sales increasing 5.3 percent, and electricity consumption in the business and industrial sectors remaining expansive.
Public optimism is also maintained, as seen from the Consumer Confidence Index (IKK) at 125.2 in February 2026, reflecting positive perceptions of the current and future economic conditions.
On the price side, inflation remains controlled despite increased demand during Ramadan.
The Consumer Price Index (CPI) inflation for March 2026 was recorded at 3.5 percent year-on-year, down from February’s 4.8 percent.
The decline in inflation was mainly influenced by easing pressures on government-regulated price components and volatile food prices.
The external sector’s performance also remains solid. Indonesia’s trade balance has recorded a surplus for 70 consecutive months, with a February 2026 surplus of $1.27 billion.
Cumulatively, Febrio stated, the January–February 2026 trade surplus reached $2.23 billion, with positive export growth driven by flagship commodities such as iron and steel, vegetable oils, and mineral fuels.
Febrio stated that the government will continue to strengthen the policy mix to maintain economic stability, including through inflation control, investment strengthening, and enhancement of national energy resilience.
These steps are deemed important to maintain growth momentum amid increasingly complex global dynamics.