FX.co ★ Indonesia Manufacturing Growth Hits 31-Month High

Indonesia’s S&P Global Manufacturing PMI rose to 54.0 in October 2026 from 52.4 in September, its highest level since March 2024. New orders expanded for a third consecutive month and at the fastest pace since October 2021, while export demand posted its strongest increase since data collection began in April 2011. Output grew for a second month, registering its sharpest rise since March 2024.

Firms stepped up input purchases, leading to a marked build-up of pre-production inventories. However, employment growth remained only marginal, and backlogs of work increased moderately. Supplier delivery times shortened for the first time in over a year, pointing to better transport and shipping conditions.

On the price front, input cost inflation accelerated, driven by higher raw material and fuel prices and adverse exchange rate movements. In response, companies raised selling prices at a faster rate. Business confidence stayed positive and broadly unchanged, supported by expectations of sustained demand, further business expansion, and easing price and supply-side constraints.