Indonesia’s manufacturing sector returned to the threshold of expansion in May 2026, with the S&P Global Manufacturing PMI rising to 50.0 from 49.1 in April. The latest reading, updated on 2 June 2026, marks a shift out of contraction territory after the index had slipped below the 50-point mark in the previous month.
While the move is modest, the PMI’s rise to 50.0 suggests stabilizing conditions in Indonesia’s factory activity, indicating that output, orders, and operating conditions are no longer deteriorating on aggregate. The April reading of 49.1 had signaled a mild contraction in the sector, raising concerns over momentum in the country’s industrial base.
The May data will be closely watched by investors and policymakers as a potential early signal that pressures on the manufacturing economy are easing, with attention now turning to whether the sector can build on this stabilisation and move into a more decisive expansion in the coming months.
