Indonesia’s manufacturing sector showed renewed strength in February 2026. The Purchasing Managers’ Index (PMI) climbed to its highest level since March 2024. This signals solid expansion in factory activity, supported by stronger demand both at home and abroad.
Key Facts & Background
- PMI Level: The S&P Global Indonesia Manufacturing PMI rose to 53.8 in February 2026, up from 52.6 in January 2026.
- Expansion Trend: This marks the seventh consecutive month of expansion, with the February figure the strongest in nearly two years.
- Domestic Demand: New orders grew for the seventh straight month, at the fastest pace since late 2025.
- Output Growth: Factory output expanded at the quickest rate since April 2024.
- Foreign Demand: Export orders increased for the first time in six months, recording their strongest rise since May 2022.
- Employment: Firms added jobs for the sixth time in seven months, helping stabilize backlogs.
- Purchasing Activity: Input buying rose at the sharpest rate in almost two years, reflecting confidence in future demand.
- Supply Chain Pressures: Delivery times lengthened for the fifth month due to shipping delays and flooding, highlighting ongoing logistical challenges.
- Disclaimer: AI-data analytics across multiple sources, with human editorial oversight.
Strategic Insights
Indonesia’s manufacturing PMI reaching 53.8 in February 2026 highlights the sector’s resilience and growing momentum after a period of uneven recovery. Stronger domestic demand, coupled with a rebound in export orders, suggests that both internal consumption and external markets are contributing to expansion. Employment gains and rising input purchases reflect business confidence, though supply chain disruptions remain a risk factor. For policymakers, the data signals that manufacturing is positioned as a key driver of economic growth, while for businesses and investors, the sustained expansion reinforces Indonesia’s role as a competitive hub in regional production networks. Over the longer term, maintaining this momentum will depend on how effectively Indonesia addresses infrastructure bottlenecks and strengthens supply chain resilience.