Indonesia manufacturing PMI rises to 50.2 in July, back to growth
Kadin says the recovery is still fragile as raw material costs rise, export demand stays weak and investment remains on hold.
Indonesia’s manufacturing PMI returned to expansion territory in July 2026 after rising to 50.2 from 46.9 in June, according to S&P Global data. A reading above the 50 threshold signals factory activity has resumed growth after contracting. The Indonesia Chamber of Commerce and Industry said the improvement was supported by higher output and better domestic demand, which lifted new orders. However, Kadin Deputy Chairman for Industry Saleh Husin said the recovery remains weak because raw material costs are still rising, export demand is soft and businesses remain cautious about buying inputs and adding capacity. Deputy Industry Minister Faisol Riza said improvements in supply chains, logistics and global conditions could help keep PMI higher in the coming months.