Business · Economy · 3 hrs ago
Indonesia’s factory activity strengthens as GDP figures approach
Indonesia’s manufacturing activity strengthened ahead of the release of third-quarter growth figures.
Its factory purchasing managers’ index rose to 54.0 in October from 52.4 in September; readings above 50 indicate expansion.
That was the strongest factory expansion in more than two years, driven by rising new orders, including record growth in export orders since the survey began in 2011.
The country also recorded a US$3.36 billion trade surplus in September, its third monthly surplus in a row, as exports rose.
Inflation was 3.23% in October, within the government’s target range, although food prices rose faster as dry conditions affected some crops.
The government says it will strengthen steps to protect food production and distribution ahead of the Christmas and New Year period.
The figures point to stronger industry and trade alongside contained overall inflation as Indonesia prepares to publish its third-quarter economic growth data.
Indonesia’s manufacturing Purchasing Managers’ Index rose to 54.0 in October 2026, its strongest reading in more than two years.
The index increased from 52.4 in September, with readings above 50 indicating expansion.
New orders grew at their fastest pace in five years, while new export orders reached a record since the survey began in April 2011.
The stronger factory activity came ahead of the announcement of third-quarter 2026 economic growth figures.
Indonesia also recorded a September trade surplus of US$3.36 billion and October inflation of 3.23% year on year.
- Who
- Indonesia’s manufacturing sector and the Indonesian government.
- What
- Manufacturing activity strengthened, with the PMI rising to 54.0 in October. The report also cited a September trade surplus and October inflation.
- When
- October 2026, ahead of the announcement of third-quarter 2026 GDP growth figures.
- Where
- Indonesia.
- Why
- Stronger domestic and overseas demand supported manufacturing activity. The government also pointed to controlled inflation and a trade surplus as positive indicators.
This story does not have two clearly opposing sides.
Indonesia recorded a trade surplus of US$3.36 billion.
The manufacturing PMI rose from 52.4 to 54.0, marking the strongest expansion since March 2024.
Airlangga Hartarto said Indonesia’s economic foundations remained strong amid global uncertainty.
The report described manufacturing, inflation and trade figures as positive indicators.
- Manufacturing PMI
- 54.0 in October 2026
- September PMI
- 52.4
- Trade surplus
- US$3.36 billion in September 2026
- Exports
- US$27.59 billion in September 2026
- Inflation
- 3.23% year on year in October 2026
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Fondasi perekonomian Indonesia tetap kuat di tengah dinamika global yang masih penuh ketidakpastian