BI Records Manufacturing Industry Continues to Grow in the Second Quarter of 2026
JAKARTA - Bank Indonesia (BI) reported that the performance of the business field (LU) of the processing industry remained in the expansion phase in the second quarter of 2026. This is reflected in the Bank Indonesia Prompt Manufacturing Index (PMI-BI) which reached 51.43 or above the expansion threshold of 50.
The Executive Director of the Communication Department of Bank Indonesia, Ramdan Denny Prakoso, said that the majority of the components that make up PMI-BI, namely production volume, volume of finished goods inventory, and total order volume, still show growth.
"With this development, the performance of the industrial processing industry (LU) in the second quarter of 2026 remains maintained and is in the expansion phase (index > 50 percent), reflected by the PMI-BI of 51.43," he said in an official statement, Friday, July 17.
Sectorally, most sub-fields of business (Sub-LU) also recorded an expansionary performance, with the highest index coming from the machinery and equipment industry, followed by the food and beverage industry, the basic metal industry, and the non-metallic mineral industry.
At the beginning of the third quarter of 2026, Bank Indonesia estimates that processing industry activity will increase, namely PMI-BI is projected to rise to 52.32, indicating the strengthening of the expansion of the manufacturing sector.
"In the third quarter of 2026, the performance of the Industrial Processing LU is expected to increase and remain in the expansion phase, reflected by the PMI-BI of 52.32," he said.
BI revealed that the strengthening in the third quarter is expected to be driven mainly by an increase in production volume, the volume of finished goods inventory, and the total order volume.
Furthermore, the majority of industrial subsectors are also projected to remain in the expansion zone, namely the machinery and equipment industry is expected to record the highest index, followed by the tobacco processing industry, basic metal industry, and transportation equipment industry.