Indonesia manufacturing PMI jumps to 52.4 as demand and exports rebound
Indonesia’s manufacturing sector returned to stronger expansion in September, supported by rising domestic and export demand, higher production and increased employment.
Indonesia’s manufacturing sector remained in expansion territory in September, with activity accelerating sharply from the previous month, according to S&P Global data released Thursday, October 1, 2026.
The S&P Global Purchasing Managers’ Index (PMI) for Indonesia’s manufacturing sector rose to 52.4 in September from 49.8 in August. A reading above 50 indicates expansion.
The September reading was the highest in seven months, or since February, before the outbreak of war in the Middle East.
“Demand for Indonesian manufactured products increased in September. New order volumes reached their highest level since February,” S&P Global said in a statement.
Export demand also returned to positive growth, with the pace of expansion reaching its fastest since May 2022.
Manufacturers responded to stronger demand by increasing production. The pace of output growth in September was the fastest since February, reflecting an improvement in purchasing power.
“Job creation also increased in September as workloads rose. The rate was even the fastest since February last year,” the report said.
Input cost pressures eased during the month, with inflation reaching its lowest rate in six months. Manufacturers responded by increasing inventories of raw materials at the fastest pace since February.
Business sentiment toward the remainder of 2026 remained positive, supported by expectations of higher production, improving demand, business expansion plans and more affordable raw material prices.
“Indonesia’s manufacturing sector closed the third quarter of 2026 on a strong footing. Output and employment rose solidly, supported by export demand,” Trevor Balchin, economics director at S&P Global Market Intelligence, said.
“The short-term production outlook remains promising. Businesses remain optimistic about conditions over the next 12 months,” he added.
