FX.co ★ Indonesia Manufacturing PMI Plunges to Near 4-Year Low

The S&P Global Indonesia Manufacturing PMI experienced a sharp decline, falling to 46.7 in April 2025 from 52.4 in March. This marks the first decrease in factory activity in six months, and it represents the most significant drop since August 2021. Manufacturing output has reached its lowest in nearly four years, and new orders have contracted following a period of four months of growth. There has also been a downturn in foreign demand, with exports declining for the second time in three months. Employment has decreased for the first time in five months due to a moderate reduction in work backlogs, and purchasing activity has been curtailed following a period of consistent increases. On a positive note, the weakening pressure on capacity has resulted in improved supplier delivery times, the first such improvement since November. Input cost inflation remains high, influenced in part by a stronger US dollar increasing import prices, but it is at its lowest level since October 2020. Companies have continued to increase output charges for the seventh consecutive month, with rates reaching the highest this year. However, business confidence has dipped to a three-month low, falling below the long-term average.