Indonesia's manufacturing sector experienced a slowdown in December 2025, as reflected in the latest S&P Global Manufacturing PMI data. The Purchasing Managers' Index (PMI), which serves as an indicator of economic health in the manufacturing sector, reported a decrease to 51.2 from November's 53.3. This decline suggests a softening in growth, despite remaining above the critical 50.0 mark that separates expansion from contraction.
The December PMI figures, updated on January 2, 2026, highlight a deceleration in the growth of the manufacturing sector, yet indicate that it is still expanding, albeit at a slower rate than in the previous month. Factors contributing to this slowdown could include a range of domestic and global economic influences; however, the specific causes were not detailed in the latest data release.
As the manufacturing sector is a significant component of Indonesia's economy, these figures may prompt analysts and policymakers to keep a close watch on upcoming economic policies and market conditions to sustain growth and stability in the coming months. The continued expansion, though modest, remains a positive signal for Indonesia's economic outlook into the new year.
