S&P Records Indonesia Manufacturing PMI of 53.8 in February, Highest in Two Years
Indonesia’s manufacturing sector has strengthened again in mid-first quarter, offering positive prospects for the coming months.
Jakarta (ANTARA) — S&P Global Market has released data showing Indonesia’s Purchasing Managers’ Index (PMI) for Manufacturing reached 53.8 points in February, marking the highest level in nearly two years since March 2024.
The manufacturing PMI in February rose month-on-month from the previous reading of 52.6 points, signalling increasingly robust expansion in the industrial sector at the beginning of the year.
Usamah Bhatti, Economist at S&P Global Market Intelligence, stated in a statement received in Jakarta on Monday that the improvement in Indonesia’s manufacturing conditions has strengthened again in mid-first quarter and offers positive prospects for the industrial sector’s future performance.
The achievement demonstrates that national manufacturing conditions remain in an expansive zone, as the index stands above the 50-point threshold that separates expansion from contraction phases.
The rise in PMI simultaneously reflects increased production activity and demand in the industrial sector.
“The improvement in Indonesia’s manufacturing sector conditions has strengthened again in mid-first quarter, offering positive prospects for the coming months,” said Bhatti.
He explained that demand conditions show an increasingly positive trend. Strong sales growth is prompting companies to increase production levels, hire additional labour, and boost raw material purchasing activity.
However, Bhatti also noted that price pressures remain quite high in the manufacturing sector, as producers continue to face rising production costs due to increasing raw material prices.
“Price pressures remain elevated, with manufacturers reporting increases in average cost burdens amid reports of rising raw material prices. Consequently, inflation rates are at their lowest since August, which has subsequently driven increases in factory gate prices,” said Bhatti.
The Ministry of Industry (Kemenperin) reported that the Industrial Confidence Index (IKI) for February 2026, or Ramadhan 1447 in the Islamic calendar, stood at 54.02 points in the expansion phase.
Febri Hendri Antoni Arif, Ministry of Industry Spokesperson, stated in Jakarta on Thursday (26/2) that based on survey results, out of 23 processed industrial subsectors analysed, 19 subsectors were in the expansion phase with only four experiencing contraction.
Although the IKI in February declined slightly by 0.10 points month-on-month, according to Febri, subsectors in the expansion phase contributed 92.9 per cent to non-oil and gas processed industrial GDP.
The two subsectors with the highest IKI values are printing and reproduction of recorded media industry, and other transport equipment industry.