Business Climate and Manufacturing Prospects Remain Expansionary in Q2 2026, BPS Reveals Data

The Business Conditions and Manufacturing Prospects Index (IKBM) for the second quarter of 2026 was recorded at 52.31, an increase from 51.37 in the first quarter, according to Statistics Indonesia (BPS). Deputy for Balance Sheet and Statistical Analysis Moh. Edy Mahmud stated that a value above 50 indicates the manufacturing business climate and prospects remain in an expansionary phase.

Most components of the index experienced growth. The orders component rose from 52.69 in the first quarter to 53.78 in the second quarter, while the production component increased from 51.78 to 54.21. The stocks component also saw a slight increase from 51.54 to 51.86. Edy noted that this reflects continued growth in production activity, demand, and inventory within the manufacturing sector.

However, two components remained in contractionary territory. The employment component registered a value of 49.92, and the delivery time component stood at 49.71. Edy explained that this indicates the employment situation and delivery times in the manufacturing sector still faced challenges during the second quarter.

In a separate report, Edy announced that Indonesia’s economic growth reached 5.29 per cent year-on-year in the second quarter of 2026, slowing from 5.61 per cent in the first quarter. The country’s gross domestic product (GDP) for the quarter was recorded at Rp 6,552.1 trillion at current prices and Rp 3,576.2 trillion at constant prices. On a quarter-to-quarter basis, the economy grew by 3.73 per cent, while cumulative growth for the first half of 2026 reached 5.45 per cent compared to the same period in 2025.