Jakarta (ANTARA) – Indonesia’s Finance Ministry said it will strengthen the business climate and industrial competitiveness after the manufacturing Purchasing Managers’ Index (PMI) rose to 52.6 in January 2026 from 51.2 a month earlier.The increase signals resilience and stronger external competitiveness despite domestic and global challenges, said Febrio Kacaribu, director general for economic and fiscal strategy, in a statement on Monday.Febrio said Indonesia’s manufacturing expansion was driven by stronger domestic demand and higher production output across several subsectors.He added that while global supply chain disruptions and weaker export orders persist, the country’s industrial fundamentals remain intact.Business sentiment climbed to its highest level in ten months, reflecting improved confidence in the sustainability of Indonesia’s economic expansion, Febrio said.That optimism is supported by signs of improving external demand, as reflected in manufacturing performance among Indonesia’s key trading partners.In January 2026, India’s PMI remained firmly expansionary at 56.8, while the United States stayed in growth territory at 51.9.Across Southeast Asia, the aggregate ASEAN manufacturing PMI stood at 52.8, supported by solid readings in the Philippines at 52.9 and Vietnam at 52.5.“The government will continue strengthening the business environment and boosting industrial competitiveness, including accelerating efforts to remove investment bottlenecks,” Febrio said.Improving manufacturing performance has coincided with positive trends across several domestic economic indicators.The real sales index rose 4.4 percent year-on-year, driven by higher food and beverage sales and increased population mobility.Consumer activity also strengthened, with motorcycle sales jumping 14.5 percent and car sales rising 17.9 percent year-on-year toward the end of 2025.Electricity sales grew 4.8 percent late last year, with the business segment recording the fastest increase in power consumption.Stronger economic activity helped keep the consumer confidence index at an optimistic 123.5 in December 2025.Manufacturing gains also lifted export value added, with total exports rising 11.64 percent year-on-year in December 2025.Non-oil and gas exports climbed 13.72 percent, led by a 19.26 percent increase in shipments from the processing industry.Imports reached US$23.83 billion in December, up 10.81 percent year-on-year, resulting in a US$2.51 billion monthly trade surplus.For the full January–December 2025 period, Indonesia posted a US$41.05 billion trade surplus, extending a streak that has continued since May 2020.