Indonesian Manufacturing Plunges, Recovery Prospects Challenging

JAKARTA - Indonesia’s manufacturing activity has slumped back into contraction territory in June 2026 amid soaring production costs and weakening export demand. The prospects for recovery remain overshadowed by a number of risks. The pressure on Indonesia’s manufacturing sector is reflected in the latest S&P Global report, which recorded the Manufacturing Purchasing Managers’ Index (PMI) falling to 46.9 in June 2026 from 50.0 in May. S&P Global noted that the decline marks a change in operating conditions that were nearly stagnant in the sector.