PMI Plunges: Indonesia's Manufacturing Sector Struggles.

The absence of trade measures and international trade policy instruments has resulted in Indonesia becoming a target for an influx of both legal and illegal imported products, which has led to a contraction in the manufacturing sector. The Purchasing Manager's Index (PMI) for November 2024 remained in the contraction zone at 49.6, indicating a continuation of the sluggish trend that began in July 2024. Febri Hendri Antoni Arief, a spokesperson for the Ministry of Industry, stated that the competitiveness of local industrial products has been undermined by the influx of imported finished products and an import relaxation policy that allows more imported products into the Indonesian market. This policy has also presented challenges for the industry in terms of increasing production utilization. A comparison of Indonesia's trade measures and instruments with those of other countries reveals the vulnerability of the Indonesian domestic market. At present, Indonesia has just 207 types of trade measures instruments, a figure that is considerably lower than that of other WTO countries.

RI Minim Hambatan Dagang, Manufaktur Loyo Digempur Barang Impor
 

Deflationary Pressure Cools Inflation, But PMI Lags.

The inflation rate in Indonesia for November 2024 was 1.55% on an annual basis, which is close to the lower limit of the government's target range of 1.5% to 3.5%. Despite a deceleration in the rate of inflation compared to the previous month, Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Morgiarso, remains unconcerned about this trend. He noted that the recent deflation in volatile food prices contributed to this decrease, while the core component continued to experience inflation. Susiwijono is confident that consumer purchasing power remains strong and that the low inflation rate will not impede economic growth. However, the Purchasing Managers' Index (PMI) contracted to a level of 49.6 in November 2024, although this figure represents an improvement from the previous month. Overall, Indonesia's inflation is under control, especially in relation to volatile foods, and the government remains optimistic about the country's economic prospects.

Inflasi November 2024 Dekati Ambang Batas Bawah, Begini Respons Pemerintah
 

OPEC+ Meeting Looms as Oil Prices Stabilize.

Oil prices have risen in anticipation of China's gradual economic recovery and the upcoming OPEC+ meeting. According to a Bloomberg report, the price of Brent crude oil increased by 0.3% to $72.05 per barrel, following a 3% decline the previous week. The price of West Texas Intermediate (WTI) oil also increased by 0.3%, reaching $68.22 per barrel. The increase in oil prices was influenced by the release of data indicating a second consecutive month of growth in Chinese factory activity in November. This preliminary indication of economic recovery is notable given China's status as the largest importer of crude oil. Furthermore, the OPEC+ meeting, which was initially scheduled for Thursday, has been postponed by four days. Market participants will be closely monitoring the meeting for any indications of future policy direction. It is anticipated that OPEC+ will likely postpone a slight increase in production for the third time. In general, oil prices have remained relatively stable since mid-October, influenced by geopolitical developments and the outlook for the oil market.

Ada Tanda Perbaikan Ekonomi China, Harga Minyak Global Memanas