Indonesia’s manufacturing sector edged back into contraction territory in August, as the S&P Global Manufacturing PMI dipped to 49.8 from 50.2 in July 2026, according to data updated on 1 September 2026.
The reading below the 50.0 threshold marks a reversal from July’s marginal expansion and suggests a mild deterioration in operating conditions across the sector. While the shift from 50.2 to 49.8 is modest, it indicates that output, new orders or other key components weakened enough to pull the overall index back into contraction.
The latest data will be closely watched by investors and policymakers, as it may signal emerging pressure on Indonesia’s industrial momentum after briefly moving into growth in July. Further readings will be needed to determine whether August’s decline is a temporary setback or the start of a more persistent slowdown in manufacturing activity.
