Indonesia Manufacturing Stabilises in May

2026-06-02 00:48 By Farida Husna 1 min. read

Indonesia’s S&P Global Manufacturing PMI rose to 50.0 in May 2026 from April’s ten-month low of 49.1, signaling broadly stable factory conditions.

New orders expanded for a second straight month, with growth at its fastest since February.

Yet export orders fell for a third month and at the steepest pace since August 2021, as Middle East conflict disruptions continued to weigh on trade.

Output shrank again, though less sharply than in April, while raw material shortages forced firms to cut purchases.

Backlogs of work increased for the first time since February, underscoring supply constraints, while employment slipped for a third month, albeit marginally.

On prices, input cost inflation accelerated to its second-highest on record, driven by surging raw material prices, prompting the strongest selling price hikes since October 2013.

Supplier performance deteriorated further amid delivery delays.

Finally, business confidence improved slightly, with optimism still muted overall.



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Indonesia Manufacturing Stabilises in May
Indonesia’s S&P Global Manufacturing PMI rose to 50.0 in May 2026 from April’s ten-month low of 49.1, signaling broadly stable factory conditions. New orders expanded for a second straight month, with growth at its fastest since February. Yet export orders fell for a third month and at the steepest pace since August 2021, as Middle East conflict disruptions continued to weigh on trade. Output shrank again, though less sharply than in April, while raw material shortages forced firms to cut purchases. Backlogs of work increased for the first time since February, underscoring supply constraints, while employment slipped for a third month, albeit marginally. On prices, input cost inflation accelerated to its second-highest on record, driven by surging raw material prices, prompting the strongest selling price hikes since October 2013. Supplier performance deteriorated further amid delivery delays. Finally, business confidence improved slightly, with optimism still muted overall.
2026-06-02
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.
2026-05-04
Indonesia Manufacturing Stalls as Middle East Tensions Weigh
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.
2026-04-01