Indonesia's Manufacturing PMI Plummets to 46.9, Airlangga Cites Supply Chain Disruption

Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed the reason behind Indonesia’s manufacturing sector falling into contraction territory. “It is related to the supply chain. The supply chain is very disrupted, and Indonesia is indeed experiencing a lagging effect. So we are late in feeling the disruption,” he told reporters at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday (1/7/2026). Airlangga stated that this global supply chain issue is a topic of discussion worldwide. “Whether it is the OECD or ASEAN, therefore, that must be a concern,” he said. Nevertheless, Airlangga noted that Indonesia’s manufacturing condition is actually still relatively good when looking at the 12-month forward projection. “But if we look at the 12-month outlook, they are relatively more optimistic,” said Airlangga. The Purchasing Managers’ Index data released by S&P Global today, Wednesday (1/7/2026), showed Indonesia’s PMI at 46.9 in June 2026. This level of decline is the strongest in a year, with incoming new orders falling again, causing the largest drop in output volume since April 2025. S&P revealed that this PMI indicates a further deterioration in the health of the goods-producing sector. The headline figure shows a solid decline in factory operating conditions, one of the largest in a year.