October manufacturing PMI reflects robust industrial growth: Sarmuji

Jakarta (ANTARA) - Industry Minister Muhammad Sarmuji said Indonesia's manufacturing Purchasing Managers' Index (PMI) reached 54 in October 2026, marking the country's strongest industrial sector expansion in 31 months.

Speaking on the sidelines of the Sago Business Forum 2026 in Jakarta on Thursday, Sarmuji emphasized that the robust data completely refutes current narratives suggesting a slowdown in the national industrial sector.

"Investor and business confidence—particularly among industrialists—in Indonesia is currently very strong. Therefore, the prevailing narratives suggesting a decline in our industrial sector are refuted by this latest data," Sarmuji said.

Citing figures from Standard & Poor's, the minister noted that the PMI reading of 54 outperforms the 50-point threshold that separates sector expansion from contraction. This performance represents the highest growth rate recorded since March 2024.

Indonesia’s manufacturing expansion surpassed several regional peer economies during the period, outperforming Malaysia (51), Vietnam (52.3), and China (52). Meanwhile, Australia recorded a contraction with a PMI figure of 49.

In addition to the manufacturing PMI, Sarmuji pointed to a strengthening Industrial Confidence Index, which came in at 53.77.

According to the minister, this highlights consistent, widespread optimism among business players regarding national industrial growth.

The expansion has been further reinforced by the fastest growth in new orders seen over the past five years, alongside a historic surge in new export orders since national tracking began.

Sarmuji noted that the industrial sector's current growth rate has outpaced broader national economic growth, marking its best performance in over a decade.

Addressing sector-specific metrics, the food and beverage industry recorded a significant growth rate of 6.77 percent—an increase of 0.8 percentage points compared to the same period last year.

The sector remains an anchor for non-oil and gas manufacturing, accounting for 41.80 percent of its contribution to the national GDP in 2026.

Realized investments in the food and beverage sector reached Rp47.74 trillion (approximately US$2.64 billion) in the first half of 2026, with domestic investments driving 59 percent of the total.

Sarmuji urged all relevant stakeholders to capitalize on the positive momentum to further boost the industrial sector's contribution to job creation, economic growth, and its overall share of the national GDP.

"There are many other positive aspects that show Indonesia is actually doing just fine. We are in a bright situation, not a bleak one as some have suggested," Sarmuji added.

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Translator: Muhammad Harianto, Yashinta Difa
Editor: Rahmad Nasution
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