Martin Bagya Kertiyasa, Jakarta – Indonesia's manufacturing sector maintained expansion in the first quarter of 2026, with stronger output, orders, and inventories signaling sustained industrial momentum, Bank Indonesia reported.
The central bank's Prompt Manufacturing Index (PMI) rose to 52.03% in the January – March period, up from 51.86% in the previous quarter, remaining firmly above the 50% expansion threshold.
"Based on its components, PMI performance was driven by finished goods inventories at 54.43%, production volume at 54.07%, and total order volume at 53.20%, all of which remained in the expansion phase," said Bank Indonesia Communications Department Director Anton Pitono in a written statement on Friday.
Across subsectors, most industries also recorded expansion. The paper and paper products, printing, and media reproduction segment posted the highest index at 57.27%, followed by leather goods and footwear at 55.83%, and food and beverages at 55.33%.
Bank Indonesia expects the manufacturing sector to remain in expansion territory in the second quarter, with the PMI projected to edge up to 52.26%, supported by continued gains in production, inventories, and orders.
Most subsectors are also forecast to stay in expansion, led by the furniture industry, followed by leather and footwear, as well as food and beverages.