Ilona Estherina, Jakarta – Global rating agency Standard & Poor's Global Ratings (S&P) reported that Indonesia's manufacturing Purchasing Manager's Index (PMI) in February is still in the expansion zone with a score of 53.8. This marks an improvement from January.
"The headline S&P Global Indonesia Manufacturing Purchasing Managers' Index rose from 52.6 in January to 53.8 in February, indicating a stronger improvement in the health of the goods-producing sector," the S&P Global release reads, as quoted on Monday, March 2, 2026.
The threshold for the expansion of the manufacturing PMI is 50, and anything below it is considered contraction. The main factor for the increase in February was the accelerating growth in demand for Indonesian-manufactured products. S&P noted that this score indicates an expansion in the operating conditions of manufacturing, which is "the steepest recorded since March 2024."
New orders have increased for seven consecutive months, with growth at the strongest level since November. The positive figures in sales have led companies to "raise employment for the sixth time" in seven months.
Additionally, there has been a reported increase in the purchase of production inputs for seven consecutive months, the sharpest increase in less than two years. At the same time, inventories have increased as some companies have added input stock to respond to the rise in demand and production needs.
Economist at S&P Global Market Intelligence, Usamah Bhatti, stated that Indonesia's manufacturing sector "strengthened once again midway through the first quarter, boding well for the coming month."
But price pressures remain steep, however, with manufacturers noting an increase in raw material prices.