Indonesia’s manufacturing sector continued its six‑month expansion in January 2026, with the Indonesian Manufacturing Purchasing Managers Index (PMI) rising to 52.6, up from 51.2 in December 2025. The growth was driven mainly by increases in new domestic orders and production output, even as export demand remained weak and continued to contract. Economist Usamah Bhatti from S&P Global noted that the recovery is still heavily reliant on the domestic market. Business sentiment also strengthened, supported by rising backlogs of work for three consecutive months and improving expectations for the year ahead. Production activity accelerated at the fastest pace in 11 months, prompting companies to boost raw material purchases and expand inventories of both inputs and finished goods. However, employment levels have been declining since July 2025 despite rising workloads. Cost pressures also intensified, with input prices increasing at the fastest rate in more than four years due to supply disruptions and weather‑related issues. These higher costs were partly passed on to consumers through rising output prices. Overall, business confidence for the next 12 months improved significantly, driven by expectations of strong and sustained domestic demand.Source: https://ekonomi.bisnis.com/read/20260202/257/1949103/pmi-manufaktur-ekspansi-ke-level-526-pada-januari-2026 (ICE GIACARTA)

Fonte notizia: Bisnis.com, 2 February 2026