Manufacturing PMI Up To 53.3 In November 2025, Driven By An Increase In Orders Towards The End Of The Year

JAKARTA - Indonesia's manufacturing activities continue to show improvements in line with the improvement of the Purchasing Managers' Index (PMI) which was held back in an expansive phase for four consecutive months until November 2025.

Based on the S&P Global report, Indonesia's manufacturing PMI in November 2025 was recorded at 53.3, up from 51.2 in October. The increase shows a recovery trend after briefly sloping to 50.4 in September.

Indonesia's increase in manufacturing in November was supported by an increase in production volume and a surge in new orders which was the fastest since August 2023.

S&P Global noted that demand was mainly supported by the domestic market, while export orders continued to plummet and recorded the deepest decline in 14 months. The new order is the main driver of manufacturing expansion, as domestic demand increases and strong demand increases.

Demand in general that improves also encourages an increase in a number of key indicators, ranging from increasing labor, increasing piles of jobs to increasing raw material purchasing activities.

S&P Global Market Intelligence economist Usamah Bhatti said the results of the November survey showed positive momentum in the manufacturing sector.

"The domestic economy is the main driver of demand towards the end of 2025, because the company recorded a sharper decline in export orders," he said in the report, quoted Monday, December 1.

He added that the company responded to the increasing workload by increasing the purchase of raw materials and labor along with the sharpest increase in jobs since September 2021.

Purchase of raw materials also remains solid. The company seeks to maintain adequacy in production input stocks, so that raw material supplies increase and are strongest in eight months.

However, the supply side began to be depressed because the waiting time for delivery of raw materials had increased twice in a row, triggered by delays in delivery and bad weather. In fact, delivery delays are the sharpest since October 2021.

In terms of price, the pressure of input inflation is getting stronger. The price inflation of raw materials was recorded as the highest since February. This condition makes producers increase the selling price of factories at the fastest level since April 2024, as the company's efforts to shift production costs to customers.

"Price pressure is getting more intensive towards the end of the year. Cost inflation is the highest in nine months amid rising raw material prices and exchange rate fluctuations. The increase in partial costs is borne by clients, inflation costs the highest point in 19 months," he said.

Even so, the business expectation index for the next year is recorded to weaken compared to October, and is even at its lowest position in four months. However, manufacturing players remain optimistic that production will continue to increase.

Facing 2026, industry players at the producer level will remain optimistic, although the level of confidence has decreased compared to October and has been the weakest since the survey began in April 2012.

This optimism is supported by the hope that demand will continue to strengthen, accompanied by increased purchasing power of customers.

In line with this, the Ministry of Industry noted that the industrial confidence index (IKI) in November 2025 reached 53.45. This figure is down 0.05 points from IKI in October 2025 which was recorded at 53.50.

"The value of IKI in November 2025 is 53.45 percent. This value of IKI has decreased slightly by 0.05 points compared to October 2025 which was 53.50," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the release of IKI November 2025 at the Ministry of Industry Building, Jakarta, Thursday, November 27.

Febri added, this November there were 22 sub-sectors experiencing expansion. The contribution of the 22 sub-sectors to gross domestic product (GDP) was 98.8 percent.

In other words, the IKI sub-sectors with expansive status are the largest contributors to their GDP.

The two sub-sectors with the highest value of IKI are the tobacco processing industry (KBLI 12) and the pharmaceutical industry, chemical products and traditional medicines (KBLI 21).

"The tobacco processing industry is currently actively producing processed tobacco because it has already passed the tobacco harvest period," said Febri.

"Meanwhile, the pharmaceutical industry, chemical products and traditional medicines are also the highest (IKI). We suspect that this is due to government spending, especially spending on national health insurance products on the pharmaceutical industry increasing at the end of the year," he added.

However, Febri said, there was one sub-sector that recorded a decline in performance, namely the textile industry. "So, one industrial sub-sector experiencing contraction is the textile industry," he said.