Antara News·Indonesia·Monday, November 2, 2026 at 01:40 PM UTC

Indonesia's October manufacturing PMI hits 54 on strong trade surplus

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Maria Cicilia Galuh Prayudhia, Yashinta Difa

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto briefed President Prabowo Subianto regarding the robust state of Indonesia’s national economy, highlighting surging manufacturing activity and a solid trade surplus during a limited cabinet meeting at the Presidential Palace, Monday.

Airlangga stated that Indonesia’s manufacturing Purchasing Managers' Index (PMI) reached 54 in October 2026, up from 52.4 the previous month, marking the highest expansion level since March 2024.

"This indicates a strengthening expansion in the manufacturing sector, marking the highest level of expansion since March 2024. It is a robust level of growth," Airlangga told the press following the meeting.

The manufacturing expansion is mirrored in Indonesia's external trade performance. For September 2026, the country recorded a trade surplus of US$3.36 billion, underpinned by a US$5.67 billion surplus in the non-oil and gas sector that easily absorbed a US$2.31 billion deficit in oil and gas.

Cumulatively, from January to September 2026, Indonesia’s trade balance posted a surplus of US$10.61 billion, driven by a cumulative non-oil and gas surplus of US$34.21 billion against an oil and gas deficit of US$23.6 billion.

Total exports for the first nine months of the year reached US$221.23 billion—reflecting a 5.58 percent year-on-year (yoy) increase—with non-oil and gas commodities accounting for US$212.27 billion.

Meanwhile, imports grew by 19.67 percent yoy to reach US$210.63 billion—a rise fueled primarily by domestic industrial demand for raw materials, intermediate goods and capital equipment.

On the domestic front, Airlangga reported that Indonesia's annual inflation rate in October 2026 stood at 3.23 percent, with monthly inflation at 0.22 percent and year-to-date inflation reaching 2.4 percent.

These figures comfortably sit within the government’s target range of 2.5 percent, plus or minus 1 percent.

Breaking down the components, core inflation was recorded at 2.56 percent, administered price inflation at 3.24 percent and volatile food inflation at 5.81 percent.

Pressures were driven largely by volatile food items like bird's-eye chilies and fresh fish, alongside transportation costs such as air travel.

To mitigate rising travel expenses ahead of the upcoming Christmas 2026 and New Year 2027 holiday season, the government is actively preparing targeted discount programs.

"This indicates that Indonesia's economic fundamentals remain stable and strong as of this month. It is expected that this stability will be maintained through the end of the year," Airlangga concluded.

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