BI: Manufacturing PMI for Q1 Rises to 52.03%

Bank Indonesia’s (BI) Manufacturing Purchasing Managers’ Index (PMI) indicates that the performance of the processing industry in the first quarter of 2026 is in an expansion phase at 52.03%. This position is an increase from the previous quarter, which was recorded at 51.86%.

“Based on its components, the volume of finished goods inventory, production volume, and total order volume are recorded in the expansion phase,” said Director of the BI Communication Department, Anton Pinoto, in an official statement on Friday, 17 April 2026. In detail, production volume increased to 54.07% from 53.46% in the previous quarter. The finished goods inventory volume component rose to 54.43% from 53.46% in the previous quarter.

Meanwhile, total order volume decreased to 53.20% from 53.31% in the previous quarter. The number of workers also declined with an index of 48.76% compared to 48.80% in the previous quarter. On the other hand, the speed of receiving input goods is still recorded in the contraction zone with an index of 49.06%.

Anton stated that the BI PMI is in the expansion phase for most business sub-sectors. The highest index is in Paper and Paper Products, Printing and Reproduction of Recorded Media at 57.27%. Then, the Leather Industry, Leather Products and Footwear is recorded at 55.83%. Meanwhile, the Food and Beverage Industry is recorded at 55.33%.

In the second quarter of 2026, the processing industry’s performance is expected to remain in the expansion phase and increase to 52.26%. “The expansion is mainly driven by production volume, finished goods inventory volume, and total order volume,” said Anton.

Previously, Standard & Poor’s Global Ratings also issued a Purchasing Managers’ Index report for March 2026. In the S&P report, Indonesia’s PMI dropped to 50.1 compared to February, which was recorded at 53.8.

In its analysis, S&P reported that the war between the United States and Israel with Iran triggered a rise in raw material prices. This condition affects the decline in demand and production in the manufacturing sector.

“According to the panel members’ report, one of the main factors behind the decline at the end of the first quarter is the outbreak of war in the Middle East,” said S&P Global Market Intelligence researcher, Usamah Bhatti, in a written statement on Wednesday, 1 April 2026.