Antara News·Indonesia·Monday, November 2, 2026 at 12:03 PM UTC

Rising PMI signals positive growth in Indonesia's manufacturing sector

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Ahmad, Azis Kurmala

Jakarta (ANTARA) - Industry Minister Muhammad Sarmuji said Indonesia's Manufacturing Purchasing Managers' Index (PMI) rose to 54.0 in October 2026, indicating further improvement in the country's industrial performance.

According to a report released by S&P Global on Monday, the figure marked the strongest expansion in the manufacturing sector since March 2024, or in the past 31 months. The index increased from 52.4 in September 2026.

"Indonesia's manufacturing PMI rose again in October 2026, moving further above the 50-point threshold that separates expansion from contraction. This is a positive development and indicates that national industrial activity continues to improve," Sarmuji said in a written statement confirmed in Jakarta on Monday.

He said the positive momentum must be sustained to generate greater contributions to economic growth, job creation, and industrial competitiveness.

The PMI increase was supported by new orders, which grew at their fastest pace in five years, driven by stronger market confidence and the launch of new products.

New export orders also recorded their highest growth rate since the PMI survey began in April 2011, reflecting stronger international demand for Indonesian manufactured products.

According to S&P Global data, Indonesia's manufacturing PMI in October 2026 also surpassed those of several Asia-Pacific economies, including Japan at 53.3, Vietnam at 52.3, China at 52.0, South Korea at 51.3, Malaysia at 51.0, and Australia at 49.6.

A PMI reading above 50 indicates that manufacturing activity has improved compared with the previous month. The higher the reading, the stronger the pace of improvement.

Nevertheless, the Ministry of Industry cautioned against complacency, noting that several other countries continued to record stronger manufacturing performance.

Sarmuji said the government was continuing to create a conducive business climate for the industrial sector by strengthening the manufacturing ecosystem, increasing the use of domestic products, protecting the domestic market against unfair import competition, and ensuring greater certainty in energy and raw material supplies for industries.

"Industries that already have production capabilities must continue to be strengthened, while those that still need support must be encouraged to grow further. We want manufacturing growth to be reflected not only in survey indicators but also in higher production, investment, exports, and employment," he stressed.

The improvement in the manufacturing PMI in October 2026 was also in line with an increase in the Industrial Confidence Index (IKI) during the same period.

The IKI stood at 53.77 in October 2026, up 1.84 points from 51.93 in September.

The figure was also 0.27 points higher than the October 2025 reading of 53.50, indicating a continued improvement in industrial players' confidence in national manufacturing business conditions.

Earlier, in its October PMI report, S&P Global Market Intelligence Economics Director Trevor Balchin said Indonesia's manufacturing sector had ended the third quarter on a particularly strong note.

He attributed the improvement largely to increased output and new orders, supported by export growth.

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