Copyright tempo
TEMPO.CO, Jakarta - Standard & Poor's Global Ratings (S&P), a global credit rating agency, reported that the Purchasing Manager's Index (PMI) for Indonesian manufacturing sector in October 2025 remained in expansion mode, with growth recorded from the previous month.The latest release from S&P noted a 51.2 score for Indonesian manufacturing in October 2025. "The headline PMI for Indonesian manufacturing by S&P Global rose from 50.4 in September to 51.2 in October, indicating further improvement in the health of the production sector," as stated in S&P Global's press release on Monday, November 3, 2025.The expansion threshold for manufacturing PMI is 50, below which considered a contraction zone. This marks the third consecutive month of PMI expansion. S&P noted that the key factor driving the growth in October was the acceleration of demand growth for Indonesian-manufactured products. New orders increased for three consecutive months, with the growth rate reaching its highest level since March. Reports from respondents signal improvement in the domestic market, which contributes to PMI Manufacturing's growth despite the two-month decline in exports.Among the firms reporting growing output, the boost comes primarily from new orders, albeit export markets remain weak. Some companies also noted the use of existing stocks to fulfill new orders, leading to a slight decline in post-production inventories this month.S&P Global Market Intelligence Economist Usamah Bhatti said the improvement in Indonesia's manufacturing sector is strengthening in the early fourth quarter of 2025. Demand conditions show a positive trend, with strong enough sales to drive up employment levels and purchasing activities.He explained that price pressures remain high, with manufacturers noting the sharpest hike in average cost burdens in the past eight months, along with reports of rising raw material prices. "However, companies tend to be cautious about passing on cost hikes to customers, so selling prices only experience a slight rise in an effort to maintain price competitiveness," he said.Editor’s Choice: Indonesia's Manufacturing Industry Grows 4.94%, Says MinisterClick here to get the latest news updates from Tempo on Google News
