Indonesia Manufacturing Growth Eases from 9-Month Peak
2026-01-02 00:34
By
Farida Husna
1 min. read
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.