2026.06.0200:48:27UTC+00Indonesia Manufacturing Stabilises in May

Indonesia’s S&P Global Manufacturing PMI inched up to 50.0 in May 2026 from April’s ten‑month low of 49.1, indicating broadly stable operating conditions in the factory sector. New orders rose for a second consecutive month, posting their fastest growth since February. However, export orders declined for a third straight month and at the sharpest rate since August 2021, as trade continued to be hampered by disruptions linked to conflict in the Middle East.

Output contracted again, though at a slower pace than in April, while shortages of raw materials compelled firms to cut back on purchasing activity. Backlogs of work increased for the first time since February, highlighting ongoing supply constraints. Employment edged lower for a third month running, though the rate of job shedding remained slight.

On the price front, input cost inflation quickened to its second‑highest reading on record, fuelled by surging raw material costs. This, in turn, led to the steepest increase in selling prices since October 2013. Supplier performance continued to worsen amid extended delivery times. Finally, business confidence picked up modestly, although overall sentiment remained subdued.