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Indonesia's Manufacturing Sector Shows Renewed Expansion in Early 2025

Adi Ahdiat 03/02/2025 16:20 WIB

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After a period of weakness in the second half of 2024, Indonesia's manufacturing sector rebounded in early 2025. This is reflected in the manufacturing PMI index, which continued to rise into the expa

Indonesia Manufacturing Purchasing Managers' Index (PMI) (January 2020-January 2025)

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Indonesia Manufacturing Purchasing Managers' Index (PMI) (January 2020-January 2025)

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After a period of weakness in the second half of 2024, Indonesia's manufacturing sector rebounded in early 2025.

This is reflected in the rise of Indonesia's manufacturing Purchasing Managers' Index (PMI) released by S&P Global Market Intelligence.

The PMI is an index reflecting the monthly growth performance of the industry. S&P Global Market Intelligence compiles this index from a survey of managers from hundreds of sample companies.

The survey indicators include growth in production volume, export and domestic orders, workforce numbers, supply delivery times, and stock of materials purchased by each company.

The results are then processed into a score on a scale of 0-100. A PMI score below 50 reflects a weakening or contraction; a score of 50 means stable or no change; and a score above 50 indicates strengthening or expansion compared to the previous month.

During the July-November 2024 period, Indonesia's manufacturing PMI score consistently remained below 50 points, or in the contraction zone, influenced by declining orders, reduced production, and workforce cuts.

Then in December 2024, the score rose above 50 points, returning to the expansion zone.

The strengthening continued in January 2025, with Indonesia's manufacturing PMI score reaching 51.9 points, as shown in the graph.

"Recent survey data reveals that growth in Indonesian manufacturing output is increasing. Production has risen for three consecutive months, and the expansion at the beginning of 2025 is the best since May," said S&P Global in a press release on Monday (February 3, 2025).

According to S&P Global, the increase in Indonesia's manufacturing PMI score at the beginning of this year reflects improved industry confidence, increased production, market demand, and the addition of employees.

"Companies are confident about future prospects and have therefore decided to recruit in January, increasing their workforce for two consecutive months," said S&P Global.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Manufacturing Sector Shows Renewed Expansion in Early 2025

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