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View all search resultsDomestic, foreign orders lift manufacturing activity in October
Despite stronger production, employment increased only marginally in October, according to the S&P Manufacturing Purchasing Managers’ Index (PMI), with job creation slowing from September.
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Stacks of shipping containers on March 31 at Tanjung Priok Port, North Jakarta. (AFP/Bay Ismoyo)
I
ndonesia’s manufacturing sector expanded at its fastest pace in 31 months in October, as surging domestic and export orders drove production growth, according to S&P Global.
The country’s Manufacturing Purchasing Managers’ Index (PMI) rose to 54.0 in October from 52.4 in September, keeping it above the 50-point threshold that separates expansion from contraction. The figure marks the strongest improvement in operating conditions since March 2024.
New orders rose for the third consecutive month and at their fastest pace since October 2021, supported by improved customer confidence and new product launches, S&P Global said in a report released on Monday.
Export demand also surged, with new export orders increasing at their fastest rate since the survey began in April 2011. The stronger demand drove output to its sharpest increase since March 2024.
“Strong demand also extended to international markets, with export sales rising to the greatest degree in the series history,” said Usamah Bhatti, an economist at S&P Global Market Intelligence in the report on Monday.
Manufacturers increased raw material purchases and accumulated input inventories to meet production needs, while drawing down finished-goods stocks at the fastest pace since August 2020 to fulfill incoming orders.
However, stronger demand put production capacity under pressure, as backlogs of work rose for the fourth consecutive month.
