Jakarta, INTI - Indonesia’s Manufacturing Purchasing Manager’s Index (PMI) for February 2026 reached 53.8 points, the highest level since March 2024, signaling continued expansion in the industrial sector at the start of the year.
The February PMI rose from 52.6 points in January 2026, indicating stronger production activity and demand across the manufacturing sector.
S&P Global Market Intelligence economist Usamah Bhatti assessed that the strengthening of the manufacturing sector occurred in the middle of the first quarter of 2026, providing a positive outlook for the months ahead.
A PMI reading above 50 indicates expansion, reflecting rising production activity and industrial demand.
Industrial Confidence Index and Leading Subsectors
The Ministry of Industry (Kemenperin) reported that the Industrial Confidence Index (IKI) in February 2026 remained in expansion territory at 54.02 points.
Out of 23 manufacturing subsectors, 19 were in the expansion phase while 4 experienced contraction.
The two subsectors with the highest IKI readings were printing and reproduction of recorded media, as well as other transportation equipment manufacturing.
Demand, Production, and Cost Pressures
Bhatti emphasized that stronger demand encouraged companies to increase output, expand their workforce, and purchase more raw materials.
However, price pressures remained elevated due to rising raw material costs, although producer-side inflation was recorded at its lowest level since August 2025.
Overall, Indonesia’s manufacturing sector demonstrated a solid recovery at the beginning of 2026, with both PMI and IKI indicators reinforcing the ongoing expansion trend in the industry.
Conclusion
Indonesia’s manufacturing sector started 2026 on a strong footing, with the PMI reaching its highest level in two years and the Industrial Confidence Index remaining firmly in expansion territory. Rising demand has driven higher production and employment, reinforcing positive momentum in the first quarter. While cost pressures persist, easing producer inflation provides some relief. Overall, the data points to sustained industrial resilience and a favorable outlook for the months ahead.
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