FX.co ★ Indonesia Manufacturing Expands for 3rd Month

The S&P Global Indonesia Manufacturing PMI increased to 51.2 in October 2025, up from 50.4 the previous month, signaling a third consecutive month of growth in factory activity. This upward trajectory in new orders bolstered stable production levels, alongside enhancements in purchasing and employment, with job creation accelerating at its most rapid rate since May. Despite this, capacity pressures remained moderate as backlogs of work dwindled for the seventh consecutive month, albeit at the slowest pace observed since June. Conversely, supplier performance slightly deteriorated, with lead times extending for the first time in three months due to shipping delays and road repairs. On the financial front, businesses encountered the steepest rise in input prices seen in eight months, attributed to increased raw material costs. Nonetheless, many manufacturers opted not to fully transfer these costs to consumers, minimally raising output prices to maintain competitiveness. Lastly, business confidence waned, dipping below the series average.