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.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsRI manufacturing back in expansion after monthslong slump
The rise of new orders was mainly driven by an increase in exports, which grew at the steepest rate since September 2023, alongside stronger demand in the domestic market.
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!
Mass rollout: Workers assemble electric motorcycles on Sept. 21, 2023, at Plant II of manufacturer PT Terang Dunia Internusa in Citeureup, Bogor, West Java. The company, also known by its brand name United Bike, has targeted an annual output of 500,000 units. (Antara/Arif Firmansyah)
I
ndonesia’s manufacturing activity, as measured by the manufacturing Purchasing Managers’ Index (PMI), has bounced back into expansion territory thanks to stronger domestic and global demand after four consecutive months of contraction.
Based on a survey of purchasing executives from around 400 manufacturing companies across Indonesia, the PMI report published by S&P Global on Monday shows the index rising to 51.5 in August from 49.2 in July.
This was the first time in five months that the index climbed above the 50-point threshold separating expansion from contraction.
S&P Global Market Intelligence economist Usamah Bhatti wrote in the report that the headline PMI marked a “renewed improvement in operating conditions,” as firms recorded fresh growth in both output and new orders.
New orders were mainly driven by a strong rise in exports, which grew at the steepest rate since September 2023, alongside stronger demand in the domestic market.
Manufacturers increased their employment levels to meet higher production requirements and demand. The report noted this as the first increase in job numbers in three months, albeit a modest one.
“Firms were also hopeful that output growth would continue in the near term, as the degree of optimism regarding the year-ahead outlook strengthened,” said Bhatti.
