JAKARTA \u2014 Bank Indonesia (BI) has stated that the business\nperformance of Indonesia\u2019s manufacturing industry in the second quarter\nof 2026 remained solid. This is reflected in the Prompt Manufacturing\nIndex (PMI)-BI, which stood above 50, indicating expansionary\nconditions.<\/p>\n
\u201cBusiness performance of the manufacturing industry in the second\nquarter of 2026 was in an expansionary phase (index above 50), as\nreflected in a PMI-BI of 51.43,\u201d said Ramdan Denny Prakoso, Head of BI\u2019s\nCommunications Department, in a statement on Friday (17 July 2026).<\/p>\n
Although in expansion, the PMI-BI reading for the second quarter of\n2026 was lower than the previous quarter\u2019s 52.03.<\/p>\n
Denny explained that, based on its component parts, the majority were\nin expansion: production volume, finished goods inventory, and total\norder volume. Meanwhile, the employment component and the speed of input\ngoods delivery were in the contraction zone.<\/p>\n
In the second quarter of 2026, the production volume component was\nindicated to be in the expansion zone with an index of 53.81, lower than\nthe previous quarter\u2019s 54.07. The sustained production volume\nperformance was in line with maintained public demand, supported by\nstrong total order volumes, high finished goods inventories, and the\navailability of production facilities.<\/p>\n
Total order volume performance in the second quarter of 2026 was also\nindicated to be in the expansion phase, reflected by an index of 52.77.\nHowever, this was lower than the 53.20 recorded in the first quarter of\n2026. The sustained total order volume was also supported by sufficient\ngoods, reflected in high finished goods inventories.<\/p>\n
The finished goods inventory volume component in the second quarter\nof 2026 was indicated to be in the expansion zone with an index of\n53.00, also lower than the previous quarter\u2019s 54.43.<\/p>\n
Meanwhile, the employment component in the second quarter of 2026 was\nrecorded at 48.65, down from the previous quarter\u2019s 48.76.<\/p>\n
The speed of input goods delivery component in the second quarter of\n2026 remained in the contraction zone with an index of 47.46, lower than\nthe previous quarter\u2019s 49.06.<\/p>\n
By sub-sector, most sub-sectors were also in the expansion phase. The\nhighest index was recorded in the machinery and equipment industry\n(58.24), followed by the food and beverage industry (54.05), the basic\nmetals industry (53.59), and the non-metallic mineral products industry\n(53.22).<\/p>\n
\u201cIn the third quarter of 2026, manufacturing business performance is\nexpected to improve and remain in the expansion phase, as reflected in a\nPMI-BI of 52.32. The expansion will mainly be driven by production\nvolume, finished goods inventory, and total order volume,\u201d Denny\ncontinued.<\/p>\n
The majority of sub-sectors in the third quarter of 2026 are also\nexpected to be in the expansion phase, with the highest index in the\nmachinery and equipment industry (56.62), followed by the tobacco\nprocessing industry (56.00), the basic metals industry (55.87), and the\ntransport equipment industry (55.44).<\/p>\n
For context, the PMI-BI is a composite indicator compiled to provide\nan overview of business conditions in Indonesian industry based on the\nresults of the Business Activity Survey (SKDU). PMI-BI data is derived\nfrom five components: production volume (output), total order volume,\nfinished goods inventory, employment, and the speed of input goods\ndelivery.<\/p>\n
The PMI-BI calculation serves as a pre-assessment benchmark for the\nPurchasing Managers\u2019 Index (PMI). An index above 50 indicates business\nexpansion, while an index below 50 indicates contraction.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bank-indonesia-reveals-manufacturing-industry-at-expansionary-level-heres-the-explanation-1784278398", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }