Indonesia's manufacturing sector continues to display resilience, as evidenced by a slight uptick in the S&P Global Manufacturing Purchasing Managers' Index (PMI) for January 2025. The latest data, updated on February 3, 2025, indicates a continued expansion in the sector, with the index rising to 51.9, up from December 2024's 51.2.
A PMI reading above 50 generally indicates expansion in the manufacturing sector, so the current status reflects a modest improvement in the industry’s economic activity. This increase suggests positive momentum and growing confidence among manufacturers, despite global economic uncertainties. The increment may be attributed to increased production and new orders, as supply chains gradually stabilize and consumer demand strengthens.
The rise in the PMI suggests that Indonesia's manufacturing industry is on a steady path of growth, potentially providing a boost to the country’s overall economic landscape. Stakeholders will be looking closely at forthcoming data to evaluate whether this trend will persist in the upcoming months, to support sustainable economic development in Southeast Asia's largest economy.
