FX.co ★ Indonesia Manufacturing PMI Rises to Near 2-Year High

Indonesia’s S&P Global Manufacturing PMI climbed to 53.8 in February 2026 from 52.6 in January, marking a seventh consecutive month of expansion in factory activity and the strongest growth since March 2024. The upturn was driven primarily by stronger domestic demand, with new orders rising for the seventh straight month and at their fastest pace since November. Output also increased at the quickest rate since April 2024, while foreign demand returned to growth for the first time in six months, posting its sharpest increase since May 2022.

Manufacturers expanded their workforce for the sixth time in seven months, which helped keep backlogs largely stable. Purchasing activity rose at the steepest rate in nearly two years. However, supply chain pressures persisted, as shipping disruptions and flooding led to longer delivery times for the fifth month in a row. Input costs remained high, although cost inflation eased to a six-month low, resulting in only modest increases in selling prices. Finally, business confidence weakened compared with January and remained below its long-run average.