Manufacturing PMI ticks up
Indonesia’s manufacturing activity climbed to a 2½‑year high as Bank Indonesia’s quarterly PMI rose to 52.03, signalling expansion in production and orders. The rise was driven by stronger output, inventories and new orders, even as the employment sub‑index stayed in contraction at 48.76. The paper sector was singled out as the main supporting subsector in the quarter. (tempo.co) (ekonomi.bisnis.com) (money.kompas.com)
Indonesia’s factory sector expanded at its fastest pace in 2½ years in the first quarter, with Bank Indonesia’s manufacturing index rising to 52.03 on April 17. (bi.go.id) A reading above 50 signals expansion, and the first-quarter figure was up from 51.86 in the fourth quarter of 2025, according to Bank Indonesia’s quarterly Prompt Manufacturing Index release. (bi.go.id) The increase was driven by finished-goods inventories, production volume and total orders, all of which stayed in expansion territory. Bank Indonesia said the paper and paper products segment, along with printing and recorded media, posted the highest sub-sector index. (bi.go.id) (kompas.com) The details were less even beneath the headline number. Bisnis.com reported production at 54.07, inventories at 54.43 and total orders at 53.20, while input-delivery speed stayed below 50 at 49.06. (bisnis.com) Hiring remained the weak spot. The employment component was 48.76 in the first quarter, slightly lower than 48.80 in the previous quarter, keeping it in contraction even as output and orders improved. (bisnis.com) That split matters in Indonesia because manufacturing is still the country’s biggest contributor to gross domestic product. Statistics Indonesia said the manufacturing sector accounted for about 19.07% of GDP in 2025. (bps.go.id) (kontan.co.id) Bank Indonesia said most manufacturing sub-sectors were in expansion in the first quarter, with leather and footwear and food and beverages also among the strongest groups. Tobacco processing and wood-related industries were among the weakest and remained below the expansion line, Kompas.com reported. (bi.go.id) (kompas.com) The central bank expects the expansion to continue in the second quarter. It projects the manufacturing index will edge up again to 52.26, led by production, inventories and orders. (bi.go.id) For now, Indonesia’s factories are making and stocking more goods than they were late last year. The open question is whether that stronger activity turns into broader hiring in the next quarter. (bi.go.id) (bisnis.com)
