Deputy Minister Optimistic Indonesia's Manufacturing PMI Will Continue to Rise

Jakarta (ANTARA) - Deputy Minister of Industry Faisol Riza is optimistic that Indonesian manufacturing performance will continue to improve after the manufacturing Purchasing Managers’ Index (PMI) returned to expansion, rising from 46.9 in June 2026 to 50.2 in July 2026.

Faisol believes that improving global conditions, better supply chains and a smooth logistics sector are factors that can drive an increase in national manufacturing activity going forward.

“I am optimistic that with global conditions getting better, supply chains improving and logistics improving, I think the PMI in August, September and beyond will keep rising,” Faisol said in Jakarta on Monday.

Faisol also commented on developments in the global geopolitical situation, particularly the conflict in the Middle East. He sees room for improvement as various parties seek solutions through negotiation.

He hopes that positive developments in resolving global conflicts can help create economic stability, thereby supporting an increase in domestic industrial activity.

“If we can follow this, it will greatly help improve domestic productivity, including raising our PMI and exports,” Faisol said.

Indonesia’s Manufacturing PMI, released by S&P Global, was recorded at 50.2 in July 2026, returning to the expansion zone after contracting in June 2026 at 46.9.

In July 2026, Indonesia recorded a PMI of 50.2, higher than Myanmar at 49.3, on par with Malaysia at 50.2, while the Philippines posted 51.8 and Vietnam 52.9.

Previously, the Indonesian Chamber of Commerce and Industry (Kadin) assessed that the rise in Indonesia’s manufacturing PMI to 50.2 in July 2026 was driven by increased production and improving domestic demand.

Deputy Chairman of Kadin Indonesia for Industry Saleh Husin said the rise in the PMI to 50.2 showed that national manufacturing activity had re-entered an expansionary phase after contracting in June 2026 at 46.9.

“The improvement was mainly driven by rising production and better domestic demand, so new orders began to increase again,” he said in a statement in Jakarta on Monday.

According to him, consistent expansion over the coming months, along with support from other indicators such as increased industrial output, production capacity utilisation and investment, is needed to ensure the recovery is sustainable.