Indonesia's Manufacturing Sector Expands in March 2025, While Many Other Countries Weaken

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Adi Ahdiat 10/04/2025 16:01 WIB

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Indonesia's manufacturing index remained expansionary in March 2025, while many other countries were weakening.

G20 and ASEAN-6 Manufacturing Purchasing Managers' Index (PMI) (March 2025)

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G20 and ASEAN-6 Manufacturing Purchasing Managers' Index (PMI) (March 2025)

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Indonesia's manufacturing industry remained expansive in March 2025, while many other countries experienced weakening.

This is evident from the Purchasing Managers Index (PMI) released by S&P Global Market Intelligence.

S&P Global compiles the PMI index from surveys of company managers in various countries.

The survey indicators include growth in production volume, export and domestic orders, workforce size, supply delivery times, and the 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 weakening or contraction; a score of 50 indicates stagnation or no change; and a score above 50 indicates strengthening or expansion compared to the previous month.

In March 2025, Indonesia had a manufacturing PMI score of 52.4, falling within the expansion zone.

"The main factor behind Indonesia's PMI figure above 50 is continued production expansion. The growth rate was recorded as the second strongest in the last five months and generally reflects an increase in new orders," said S&P Global Market Intelligence in a press release (April 2, 2025).

In March 2025, manufacturing industry expansion also occurred in Saudi Arabia, India, Australia, Brazil, China, Singapore, Vietnam, and the United States (US).

However, many other countries had PMI scores below 50, reflecting a weakening or contracting manufacturing industry.

Contractions were recorded in Thailand, the Philippines, South Korea, Malaysia, South Africa, France, Japan, Germany, Russia, Canada, and the UK, as shown in the graph.

According to the financial services company JP Morgan, global manufacturing optimism was also low in March 2025.

"Rising concerns about the geopolitical situation, high costs, and the potential disruption of global trade flows due to tariff wars all hampered business optimism in March," said JP Morgan in a press release (April 1, 2025).

"Business confidence fell to its lowest level in three months and weakened in the consumer goods, semi-finished goods, and investment goods sectors. Reduced optimism about business prospects is a major factor underlying the decline in global manufacturing employment," it continued.

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 Expands in March 2025, While Many Other Countries Weaken

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