TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Manufacturers' confidence grows, but cost pressure remains: PMI reports
Though costs remain a concern, Indonesian manufacturers have increased buying activity and bolstered stockpiles of input and output inventories in anticipation of demand growth this year.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Boxes of battery cells ready for shipping are stored on Aug. 28, 2024, at the Karawang, West Java, plant of PT HLI Green Power, Indonesia's first electric vehicle battery cell manufacturer. (AFP/Yasuyoshi Chiba)
D
omestic manufacturers have expanded business activity heading into 2025, bolstering input and output inventories, and remain confident about the outlook this year, even as cost pressure remains high amid an overall increase in raw materials prices.
S&P Global’s latest Indonesia Manufacturing Purchasing Managers’ Index (PMI), published on Monday, signals further expansion with a reading solidly above the crucial 50-point mark separating expansion from contraction.
The January 2025 PMI survey for Indonesia showed the activity indicator had risen to 51.9 points from 51.2 points in December 2024, marking the highest level since May last year.
Meanwhile, production had risen for three straight months with a higher volume of new orders, according to the S&P Global report.
Read also: Manufacturing PMI returns to growth but cost pressure persists
Market demand improved from both the national and global sides, with manufacturers reporting a second successive increase in monthly export orders. They also bolstered their finished goods inventories for a seventh consecutive month, in anticipation of higher sales in the coming months.
The same expectation also encouraged accumulation of inputs and higher purchasing activity among manufacturers at the start of this year.
