PMI Index for Q1 2026 Rises, Paper Industry Becomes Main Supporter

JAKARTA, KOMPAS.com - The performance of the processing industry sector improved in the first quarter of 2026.

Bank Indonesia’s (BI) Manufacturing Purchasing Managers’ Index (PMI) increased to 52.03 per cent from 51.86 per cent in the previous quarter.

Anton Pitono, Director of BI’s Communication Department, stated that the manufacturing sector at the start of this year remains in the expansion zone, as the index is above 50.

“The performance of the Processing Industry Business Field in Q1 2026 has improved and is in the expansion phase,” said Anton on Friday (17/4/2026).

The figure rose from 53.46 per cent to 54.07 per cent.

However, the majority of the PMI components experienced a decline compared to the previous quarter, namely total order volume, timeliness of input goods receipt, number of workers, and volume of finished goods inventory.

Despite still being in the expansion zone.

The order volume index fell to 53.20 per cent from 53.31 per cent, the finished goods inventory volume fell to 54.43 per cent from 53.46 per cent, the timeliness of input goods receipt fell to 49.06 per cent from 49.32 per cent, and the number of workers fell to 48.76 per cent from 48.80 per cent.

“Based on its components, Finished Goods Inventory Volume, Production Volume, and Total Order Volume are recorded in the expansion phase,” said Anton.

BI noted that the majority of business subfields remain in the expansion zone.

The paper and paper products subindustry, printing and recording media reproduction recorded the highest index, followed by the leather industry, leather goods and footwear, as well as the food and beverage industry.

Meanwhile, the subindustries below the expansion zone and recording the lowest index are the tobacco processing industry and the wood industry, wood goods, cork and plaiting goods from bamboo, rattan and the like.

“Based on Business Subfields (Sub-BF), the BI PMI for most Sub-BF is also in the expansion phase,” he said.

BI predicts that the growth of the processing industry sector will continue in the following quarter, thus remaining in the expansion zone.

In Q2 2026, BI PMI is expected to reach 52.26 per cent.

The majority of components are predicted to remain expansive.

The production volume and finished goods inventory volume components recorded the highest indices, followed by total order volume.

“The majority of Sub-BF are also projected to be in the expansion phase, with the highest indices in the Furniture Industry, Leather Industry, Leather Goods and Footwear, as well as the Food and Beverage Industry,” he added.