2026.01.0200:34:47UTC+00Indonesia Manufacturing Growth Eases from 9-Month Peak

Indonesia's S&P Global Manufacturing PMI declined to 51.2 in December 2025, down from November's peak of 53.3, which was the highest in nine months. Despite this dip, it represented the fifth consecutive month of growth in the manufacturing sector. However, there was a slowdown in the increase of new orders and employment, while international sales experienced a decline for the fourth consecutive month. Capacity pressures remained an issue, leading to a continued rise in backlogs for the second month running. Although production output increased, it was hindered by shortages of raw materials. Purchasing activity saw a moderate uptick as companies looked to boost pre-production inventories, while post-production stock levels reached a tie for their highest in six years. Delivery times extended for the third month, influenced in part by unfavorable weather conditions. Although input cost inflation remained significant, it did ease to its lowest in four months, with the increase in raw material costs and supply shortages being major contributors. Companies raised their output prices again, but not as aggressively as in November. Lastly, business confidence improved to its strongest level since September, driven by the anticipated launch of new products and an expected rise in customer demand.