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View all search resultsManufacturing stagnated in March amid price, supply strains caused by war
A monthly survey by S&P Global published on Wednesday showed Indonesia’s headline Purchasing Manager’s Index (PMI) slid from 53.8 in February to 50.1 last month.
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Workers assemble electric motorbikes at the Alva Manufacturing Facility in Cikarang, West Java, in an undated handout photograph. (Alva Auto/-)
I
ndonesia’s manufacturing activity stagnated in March amid declining output and demand, as the United States-Israeli war on Iran put pressure on prices and supplies of raw materials.
A monthly survey by S&P Global published on Wednesday showed Indonesia’s headline Purchasing Manager’s Index (PMI) slid from 53.8 in February to 50.1 last month, slightly above the 50-point threshold that separates expansion from contraction. The report said the drop indicated a "broad stagnation in operating conditions".
"March's survey data indicated renewed downturns in both output and new order intakes in the Indonesian manufacturing sector, with the former falling at the steepest rate in nine months. The fall in demand meanwhile was also attributed to a sharp reversal in new export demand, which fell at the steepest rate since last November,” said Usamah Bhatti, economist at S&P Global Market Intelligence.
The drop is consistent with other Asian countries, including the Philippines, Vietnam, Taiwan and Japan, which saw their manufacturing activities slow down. In China, the PMI figure continued to expand in March for the fourth consecutive month, though inflationary pressures and supply chain challenges are intensifying.
Read also: Manufacturing activity hit two-year high in February on stronger demand
While the PMI report for Indonesia noted the rate of decline in production level as modest, it was the steepest since June 2025, primarily driven by the material supply crunch and rising material prices amid the Middle East war and turbulence in the global economy.
The report also indicated that, for the first time in eight months, there was a moderation in new order volumes, with manufacturers citing subdued demand and higher competition as having weighed on new business intakes.
