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View all search resultsFactory activity cools in September on softer production
Indonesia’s manufacturing PMI reached 50.4 in September, marking the second straight month to remain above the 50-point threshold, reflecting the general trend across Southeast Asia.
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Workers produce surgical masks on March 18, 2020, at a factory belonging to PT Jayamas Medica Industri in Jombang regency, East Java. (Antara/Syaiful Arif)
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anufacturing growth slowed in September as a rise in new orders was offset by weaker output, according to an S&P Global report published on Wednesday.
The manufacturing purchasing managers’ index (PMI) for Indonesia stood at 50.4 last month, easing from 51.5 in August. This marked the second consecutive month the index remained above the 50-point threshold between expansion and contraction, though at a softer pace.
Indonesia’s manufacturing PMI hovered below that level over the four months from April to June 2025.
Data from the S&P Global survey showed that new orders increased for the second month in a row, driven mainly by domestic demand. Export sales declined again, however, amid subdued overseas demand. Despite stronger orders, production fell for the fifth time in six months.
“Indonesia's manufacturing economy improved at a marginal pace during September, driven by a sustained improvement in new order inflows. That said, there was a renewed fall in production volumes as firms noted weaker purchasing power among clients,” Usamah Bhatti, an economist at S&P Global Market Intelligence, said in a statement.
He added that manufacturers were increasing inventories, both in anticipation of stronger demand and to protect against further raw material price hikes.
Input price inflation accelerated to its steepest level since February, driven by broad-based increases in raw material prices. Some of these costs were passed on to customers at a modest rise in selling prices.
