Indonesia’s PMI February 2025

According to the latest report by by S&P Global Market Intelligence, the Purchasing Manager’s Index (PMI) for Indonesia’s manufacturing sector reached 53.6 in February, above the 50-point threshold that separates growth from contraction.

Domestic manufacturers have expanded their operations, boosting stockpiles and expressing confidence in market conditions, even as raw material costs continue to rise. Indonesia’s manufacturing sector remains resilient despite global economic and political uncertainties. This reflects a favorable business climate, supported by government policies aimed at enhancing productivity and industrial competitiveness.

Both domestic and international demand showed improvement, with manufacturers reporting a second consecutive monthly increase in export orders. In anticipation of rising sales, companies have also expanded their finished goods inventories for a seventh straight month.

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2024.