Indonesia Manufacturing Growth Eases

Indonesia’s S&P Global Manufacturing PMI rose to 53.8 in February 2026 from 52.6 in the previous month, marking a seventh straight month of expansion in factory activity and the fastest pace since March 2024. The improvement reflected stronger domestic demand, as new orders grew for a seventh month at the quickest rate since last November. Output also expanded at the fastest pace since April 2024, while foreign demand increased for the first time in six months, recording its strongest rise since May 2022. Firms lifted employment for the sixth time in seven months, helping keep backlogs broadly stable. Input buying rose at the sharpest rate in nearly two years. However, supply pressures persisted due to shipping delays and flooding, extending delivery times for a fifth month. Input costs remained elevated, though inflation eased to a six-month low, prompting only modest increases in selling prices. Finally, confidence softened from January and stayed below the long-run average.

Indonesia’s S&P Global Manufacturing PMI rose to 52.6 in January 2026 from 51.2 in the previous month, marking a sixth straight month of expansion in factory activity. Output grew for a third month and at the second-fastest pace in nearly a year, while new orders extended their six-month streak, signaling resilient demand. Meanwhile, firms boosted input purchases for a sixth month, as they sought to build both pre- and post-production inventories. At the same time, supplier delivery times lengthened to the greatest extent in more than four years, weighed down by stronger input demand and adverse weather conditions. Capacity pressures intensified as backlogs rose for a third month, yet employment slipped marginally after six months of gains. On the cost front, input price inflation stayed marked but steady, below the long-run average, while output prices rose modestly at the slowest pace in three months. Finally, business confidence strengthened further, reaching a ten-month high.

Indonesia’s S&P Global Manufacturing PMI slipped to 51.2 in December 2025 from November’s nine-month high of 53.3, though still marking a fifth consecutive month of expansion in factory activity. Growth in new orders and employment slowed, while foreign sales fell for a fourth month. Capacity pressures persisted, driving a second straight rise in backlogs. Output rose again but was capped by raw material shortages. Buying activity increased moderately as firms sought to build pre-production inventories, while post-production stocks rose to the joint-largest level in six years. Delivery times lengthened for a third month, partly due to adverse weather. Input cost inflation remained sharp, though it eased to a four-month low, with higher raw material prices and supply shortages cited. Firms raised output charges again, but less than in November. Finally, confidence strengthened to its highest since September, supported by expectations of new product launches and stronger customer demand.