Manufacturing PMI hits 7-month high in September on stronger demand
The stronger PMI reading, however, contrasts with the latest Industry Confidence Index (IKI) from the Industry Ministry, which showed a slowdown in manufacturing activity expansion in September.
In September, Indonesia's manufacturing sector experienced a 7-month high in the Purchasing Managers' Index (PMI), reaching its strongest level in seven months. This surge in activity was driven by a robust increase in demand, both domestically and internationally. The S&P Global PMI rose from 49.8 in August to 52.4 in September, surpassing the 50-point mark that signifies expansion.
The uptick in new orders witnessed the fastest growth since February, fueled by heightened demand and the commencement of new projects. Export orders also surged for the second consecutive month, marking the fastest increase since May 2022. These favorable trends translated into a rise in manufacturing output, with production accelerating at the fastest pace since February. Manufacturers credited the surge to strong customer demand, new projects, improved purchasing power, and an expanded product range.
Moreover, the sector saw a renewed increase in employment in September, marking only the third month of job creation this year. The pace of job growth was the fastest since February 2025. Despite the sector's expansion, backlogs of unfinished work increased at the strongest rate in five years, indicating manufacturers continued to face pressure to fulfill incoming orders. Additionally, finished-goods inventories fell at the fastest rate since August 2020 as companies drew down existing stocks to meet the surging demand.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
