Indonesia manufacturing PMI reaches 54.0 ahead of GDP release

Indonesia’s manufacturing purchasing managers’ index rose to 54.0 in October 2026 from 52.4 in September, marking the strongest improvement since March 2024. The figures come ahead of the scheduled publication of third-quarter economic growth data on 5 November.

Manufacturing expanded for a second consecutive month, with readings above 50 indicating expansion. New orders increased at their fastest pace in five years, while growth in new export orders reached its highest level since the survey began in April 2011. Production also recorded its strongest growth since March 2024.

In a written statement dated 2 November, Coordinating Minister for Economic Affairs Airlangga Hartarto described the manufacturing figures, trade surplus and contained inflation as signs of economic resilience amid global uncertainty.

Indonesia posted a US$3.36 billion trade surplus in September, its third consecutive monthly surplus. Exports totalled US$27.59 billion, up 3.68 per cent from August and 11.87 per cent from a year earlier. Imports amounted to US$24.23 billion, with both raw-material and capital-goods imports increasing.

Annual inflation stood at 3.23 per cent in October, within the national target of 2.5 per cent plus or minus 1 per cent. Core inflation eased to 2.56 per cent, but volatile food inflation reached 5.81 per cent as an El Niño-related extension of the dry season reduced production and pushed up some horticultural prices.

The government said it would strengthen measures to address food production and distribution disruptions before Christmas and New Year, including irrigation management and coordination between regions. The manufacturing, trade and inflation indicators do not, by themselves, establish the size of third-quarter GDP growth.