Rising Orders Propel Indonesian Manufacturing Forward at the Start of 2026
Jakarta, VIVA – Indonesia’s manufacturing sector is showing positive signals at the start of 2026. Amid global economic uncertainties, a surge in demand has become the primary support driving industrial activity to regain momentum.
This is reflected in various indicators demonstrating expansion trends and business optimism for future prospects. According to data from the Bank Indonesia Manufacturing Purchasing Managers’ Index (PMI-BI), manufacturing performance in the first quarter of 2026 recorded an increase and remains in the expansion phase.
“The processing industry’s performance in the first quarter of 2026 experienced an improvement, as reflected by the PMI-BI figure of 52.06 per cent, higher than the previous quarter’s 51.86 per cent,” as quoted from a press release on Friday, 17 April 2026.
This rise is primarily driven by improved production activities and a strong influx of orders. The volume of finished goods production increased to 54.15 per cent, while overall production volume reached 54.51 per cent.
On the other hand, total order volume also remained in the expansion zone with an index of 53.20 per cent. This condition confirms that orders entering the manufacturing sector remain strong and serve as the main engine of growth at the beginning of the year.
“In the first quarter of 2026, the Production Volume component is indicated to have increased and is in the expansion zone with an index of 54.07 per cent, up from 53.46 per cent in the fourth quarter of 2025,” noted Bank Indonesia.
From the subsector perspective, manufacturing expansion is supported by several leading sectors. The leather and footwear industry recorded the highest performance with an index of 57.27 per cent, followed by the printing and recording media reproduction industry at 55.33 per cent.
Additionally, the food and beverage industry has also become one of the main contributors to growth, in line with strong domestic demand that continues to support this sector’s performance.
This positive performance is expected to continue into the second quarter of 2026. Bank Indonesia projects the PMI-BI to remain in the expansion zone with an index of 52.26 per cent.
“The improvement in the processing industry’s performance is projected to continue into the second quarter of 2026 with an index of 52.26 per cent or in the expansion phase.”
Looking ahead, manufacturing expansion is expected to remain supported by increases in production volume and finished goods inventories. Production volume is projected to reach 54.51 per cent, while finished goods inventories are estimated to increase to 54.15 per cent. This reflects the industrial players’ confidence in solid demand.