Indonesia Manufacturing PMI Falls to 10-Month Low

Indonesia’s S&P Global Manufacturing PMI edged down to 49.1 in April 2026 from 50.1 in the previous month, marking its lowest level since June 2025 and signaling the first contraction in factory activity in nine months. Employment dropped at the fastest rate in ten months, and backlogs of work declined further. Firms trimmed purchasing activity slightly, in line with softer production needs. Meanwhile, ongoing delivery delays and supply constraints led manufacturers to draw down pre-production inventories to sustain output. New orders still inched higher, though largely driven by advance buying as clients sought to hedge against further price increases and supply disruptions. On inflation, cost pressures intensified, with input inflation reaching a four-year high, prompting firms to raise selling prices at the strongest pace since October 2013. Finally, business sentiment eased to a five-month low, amid concerns over prolonged tensions in the Middle East.

Indonesia’s S&P Global Manufacturing PMI dropped to 50.1 in March 2026 from 53.8 in the previous month, signaling near-stagnant conditions. Output fell after four months of growth, the sharpest decline since June 2025, as the Middle East conflict and global uncertainty weighed on activity. New orders softened for the first time in eight months, while export demand slipped after February’s rise. Backlogs contracted for the first time since October, prompting slight job cuts for the second time in three months. Purchasing activity also declined, the first drop since July 2025. Delivery delays worsened to the most severe since October 2021, extending a six-month trend amid material shortages and shipping disruptions. On inflation, cost pressures intensified, with input inflation hitting a two-year high, driving firms to raise selling prices at the fastest pace since June 2022. Looking ahead, sentiment ticked higher on hopes that demand will recover and tensions ease.

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.