02.02.202600:33:52UTC+00Indonesia Manufacturing Growth Accelerates

Indonesia's S&P Global Manufacturing PMI increased to 52.6 in January 2026 from 51.2 the previous month, marking the sixth consecutive month of growth in the manufacturing sector. Production expanded for the third month, achieving the second-highest pace in almost a year, while new orders maintained their consistent rise over the past six months, indicating strong demand. Concurrently, firms increased their purchasing of inputs for the sixth month in a row as they aimed to enhance both pre-production and post-production inventories. However, supplier delivery times reached their longest delays in over four years, impacted by heightened input demand and challenging weather conditions. Capacity pressures intensified due to a rise in backlogs for the third consecutive month, although employment experienced a slight dip after six months of gains. On the cost side, input price inflation remained significant but stable, staying below the long-term average, while output prices increased modestly at their slowest rate in three months. Lastly, business confidence continued to strengthen, reaching its highest point in ten months.