Indonesia’s May Manufacturing PMI Contracts Again as Export Orders Falter
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JAKARTA, Investortrust.id — Indonesia’s manufacturing activity remained in contractionary territory in May 2025, with the Purchasing Managers’ Index (PMI) inching up to 47.4 from 46.7 in April, according to data from S&P Global.
The Ministry of Industry attributed the sluggish performance to a persistent drop in new orders, particularly from export markets such as the United States. “This decline is linked to weak market demand, especially for exports to the US, due to the impact of Trump-era tariffs,” said the ministry's spokesperson Febri Hendri Antoni Arif in a statement on Monday, June 2.
The ministry also cited logistical challenges as a factor limiting export shipments. “There’s a shortage of shipping capacity and disruptions from severe weather,” Febri noted, adding that rising input costs were also pressuring production volumes. “Our industries are losing competitiveness because competitor prices remain flat, while our input costs keep rising,” he said.
Despite the contraction, S&P Global reported that manufacturers remain optimistic. Many expect business conditions to improve in the coming months and have continued hiring in anticipation of a demand rebound. Employment in the sector has grown for six consecutive months.
Indonesia’s weak PMI is part of a broader regional trend. Several major economies also recorded contractionary PMI figures in May, including Vietnam (49.8), France (49.5), Japan (49.0), Germany (48.8), Taiwan (48.6), South Korea (47.7), Myanmar (47.6), and the United Kingdom (45.1).