The Ministry of Industry confirmed that the national industrial growth rate in the second quarter of 2025 reached 5.60%. This data has been verified by valid indicators, including the Industrial Confidence Index (IKI), Bank Indonesia's Manufacturing Purchasing Managers' Index (PMI BI), investment, and industrial export data. The Ministry emphasized that it only uses IKI and PMI BI as a basis for policy formulation (due to covering more respondents, thus being more accurate and comprehensive), and does not use the manufacturing PMI published by S&P Global, only referencing it as general information. The economic and manufacturing growth data released by the Central Statistics Agency is accurate, and IKI and PMI BI indicate that the manufacturing sector remained in an expansion phase in the second quarter of 2025 (index above 50). Manufacturing investment spending is also showing an upward trend. In the first half of 2025, 1,641 enterprises reported establishing new production facilities through the National Industrial Information System, with a total investment of IDR 803.2 trillion. Industrial expansion directly led to the creation of approximately 303,000 new jobs, far exceeding the number of layoffs reported by other sectors or employer associations. The number of layoffs recorded by the Ministry of Manpower in the first half of 2024 was 42,385, an increase of 32.19% compared to the same period in 2023 (32,064 layoffs in the same period of 2023). In June 2025, the number of layoffs was 1,609, lower than the 4,702 in May; West Java Province accounted for the highest share of layoffs at 28.59%. A spokesperson for the Ministry of Industry stated that if pro-industry policies are implemented, manufacturing growth can further improve. Specific recommendations include controlling imports of finished goods; shifting entry ports for imported finished goods to ports in eastern Indonesia; securing raw material supply (especially natural gas raw materials for specific industries); and reducing the quota for industrial products from bonded zones entering the domestic market.
The Ministry of Industry confirmed that the national industrial growth rate in the second quarter of 2025 reached 5.60%. This data has been verified by valid indicators, including the Industrial Confidence Index (IKI), Bank Indonesia's Manufacturing Purchasing Managers' Index (PMI BI), investment, and industrial export data. The Ministry emphasized that it only uses IKI and PMI BI as a basis for policy formulation (due to covering more respondents, thus being more accurate and comprehensive), and does not use the manufacturing PMI published by S&P Global, only referencing it as general information. The economic and manufacturing growth data released by the Central Statistics Agency is accurate, and IKI and PMI BI indicate that the manufacturing sector remained in an expansion phase in the second quarter of 2025 (index above 50). Manufacturing investment spending is also showing an upward trend. In the first half of 2025, 1,641 enterprises reported establishing new production facilities through the National Industrial Information System, with a total investment of IDR 803.2 trillion. Industrial expansion directly led to the creation of approximately 303,000 new jobs, far exceeding the number of layoffs reported by other sectors or employer associations. The number of layoffs recorded by the Ministry of Manpower in the first half of 2024 was 42,385, an increase of 32.19% compared to the same period in 2023 (32,064 layoffs in the same period of 2023). In June 2025, the number of layoffs was 1,609, lower than the 4,702 in May; West Java Province accounted for the highest share of layoffs at 28.59%. A spokesperson for the Ministry of Industry stated that if pro-industry policies are implemented, manufacturing growth can further improve. Specific recommendations include controlling imports of finished goods; shifting entry ports for imported finished goods to ports in eastern Indonesia; securing raw material supply (especially natural gas raw materials for specific industries); and reducing the quota for industrial products from bonded zones entering the domestic market.