In a significant shift for Indonesia's manufacturing sector, the S&P Global Manufacturing Purchasing Managers' Index (PMI) fell to 46.7 in April 2025, indicating a contraction in manufacturing activity. This decline comes after a period of expansion, as the PMI stood at 52.4 in March. The latest data, which were updated on May 2, reflects growing challenges in maintaining production momentum.
The drop below the neutral 50.0 threshold marks a notable downturn, with factors such as supply chain disruptions and fluctuating demand potentially influencing this shift. Economists and industry leaders are closely monitoring the situation, as sustained contraction could impact broader economic performance in Indonesia.
This downward trend may compel manufacturers to reassess strategies and adapt to an evolving market landscape, all amid global economic uncertainty. Policymakers are expected to focus on creating supportive measures to stabilize and revitalize the sector in the coming months.
