FX.co ★ Indonesia Manufacturing PMI Rises to 5-Month High

Indonesia’s S&P Global Manufacturing PMI rose to 50.2 in July 2026 from 46.9 in June, its highest level since February. Output increased after four consecutive months of decline, although the expansion was only marginal, while new orders stabilized following a sharp drop in June. Export demand remained a weak spot, with overseas sales falling for a fifth straight month.

Rising workloads led to the strongest buildup of backlogs since November 2025, encouraging firms to increase staffing for the first time in five months, though hiring remained modest. Purchasing activity declined again but only slightly. Supplier delivery times lengthened for a tenth consecutive month, largely due to shipping delays, but the degree of disruption was the mildest in the current sequence as material availability improved.

Input cost inflation eased to a four‑month low but remained elevated, driven by higher raw material prices. This, in turn, prompted another sharp increase in selling prices. Business confidence strengthened, with sentiment reaching its highest level since January, supported by expectations of firmer sales, improving customer demand, and easing cost pressures.