Indonesia's Manufacturing PMI Enters Neutral Zone

Manufacturing activity in Indonesia began to show improvement in May 2026 after the manufacturing index, or Purchasing Managers’ Index (PMI), returned to the neutral level of 50.0. However, this achievement is considered not yet strong enough to signal a recovery for the industrial sector. According to a report by S&P Global, the PMI position in May indicated stable manufacturing operating conditions after experiencing contraction in the previous month. The improvement was mainly supported by an increase in domestic demand which drove a rise in new orders for two consecutive months.