Indonesia's Manufacturing Sector Remains Sluggish Until July 2025

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Adi Ahdiat 07/08/2025 19:21 WIB

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According to an S&P Global survey, Indonesia's manufacturing sector remained sluggish until July 2025, impacted by declining demand and concerns over United States trade tariffs.

Indonesia Manufacturing PMI (January 2020 - July 2025)

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Indonesia Manufacturing PMI (January 2020 - July 2025)

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Indonesia's manufacturing sector remained sluggish in July 2025, impacted by declining demand and concerns over United States (US) trade tariffs.

This condition is evident in the Purchasing Managers' Index (PMI) report released by S&P Global Market Intelligence.

S&P Global Market Intelligence compiles the PMI index based on a survey of managers from hundreds of sample manufacturing companies.

The survey indicators include growth in production volume, export and domestic orders, workforce numbers, 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 stability or no change; and a score above 50 indicates strengthening or expansion compared to the previous month.

In July 2025, Indonesia had a manufacturing PMI score of 49.2, a slight improvement compared to June 2025, but generally still in the contraction zone.

Indonesia's manufacturing PMI score has been in the contraction zone for four consecutive months since April 2025, as shown in the graph.

"July's survey data indicated another negative month for the health of the Indonesian manufacturing economy, downturns in output and new orders were sustained at the start of the third quarter," said S&P Global in a press release on Friday (1/7/2025).

"At the same time however, there was a renewed fall in new export orders, while firms remained in retrenchment mode as indicated by falling employment and purchasing levels," they said.

According to S&P Global, the confidence of Indonesian manufacturing business actors also generally fell in July 2025.

"Firms raised concerns that US tariffs and reduced purchasing power at clients would limit production volumes in the year ahead," they said.

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 Remains Sluggish Until July 2025

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