Never before did Indonesia’s manufacturing activity collapse so badly in the nine-year history of the IHS Markit Indonesia Manufacturing PMI than in April 2020. The IHS Markit Indonesia Manufacturing Purchasing Managers’ Index (PMI) plunged to a reading of 27.5 in April 2020 (from 45.3 in the preceding month). It is not only the steepest fall but also the lowest level of operating conditions ever touched since the survey started back in April 2011.

Lanjut baca ›

We were quite surprised to see Indonesia’s latest manufacturing data. From July 2019 to January 2020 Indonesia’s manufacturing activity contracted (seven consecutive months!). Subdued global economic growth and the tariff war between the United States and China were the key reasons for these weak conditions in Indonesia’s manufacturing sector.

Lanjut baca ›

As expected, Indonesia experienced a weak start of the year in terms of its manufacturing activity. The IHS Markit Indonesia Manufacturing Purchasing Managers’ Index (or PMI) was recorded at 49.3 in December 2019 (remaining stubbornly below the 50.0 level that separates contraction from expansion in the manufacturing sector). The latest PMI figure is also a slight decline from 49.5 in the preceding month.

Lanjut baca ›

For the sixth straight month manufacturing activity in Indonesia remained in the red zone. It therefore was a very disappointing second half of 2019. Moreover, it raises room for concern about Indonesia’s overall economic growth in 2019.

Lanjut baca ›

For the fifth straight month manufacturing activity in Indonesia remained in the red zone, implying that the fourth – and last – quarter of 2019 is bound to be a disappointing quarter in terms of manufacturing activity (possibly becoming the weakest quarter in four years). And this is certainly not a good omen for Indonesia’s economic growth in Q4-2019.

Lanjut baca ›

Manufacturing activity in Indonesia has been in the red zone throughout the third quarter of 2019. In fact, the performance in Q3-2019 was Indonesia’s weakest performance in terms of manufacturing activity since the last quarter of 2016.

Lanjut baca ›

After the ‘false start’ in the third quarter of 2019 when, in July, Indonesia’s manufacturing conditions contracted for the first time since January 2019, there is again some bad news to share. In August 2019 manufacturing conditions in Southeast Asia’s largest economy continued to contract, and even at a more rapid pace than last month.

Lanjut baca ›

It was not the greatest start of the 3rd quarter for Indonesian manufacturers. In fact, in July 2019, Indonesian manufacturing conditions deteriorated for the first time since January 2019. The IHS Markit Indonesia Manufacturing Purchasing Managers’ Index (PMI) fell from a reading of 50.6 in June 2019 to 49.6 in July 2019, below the 50.0 point threshold that separates expansion from contraction.

Lanjut baca ›

Activity in Indonesia’s manufacturing sector grew in March 2019 on the back of solid domestic demand. The Nikkei Indonesia Manufacturing Purchasing Managers’ Index (PMI) accelerated to a reading of 51.2 in March, from 50.1 in the preceding month (a reading above 50.0 indicates expansion in the manufacturing sector, while a reading below 50.0 indicates contraction). It also meant that Indonesia managed to outperform its regional peers as the average PMI in the ASEAN counties stood at 50.3 in March. Overall, survey data show a marginal expansion in Indonesia’s manufacturing economy during the first quarter of 2019.

Lanjut baca ›

Manufacturing activity in Indonesia contracted in January 2019. It was the first time since exactly a year ago that Indonesia’s manufacturing activity contracted. The headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers’ Index (or PMI) fell from 51.2 in December 2018 to 49.9 in the first month of 2019, representing largely unchanged conditions in the sector.

Lanjut baca ›

As usual, we devote one article to the latest available (key) macroeconomic data in an effort to assess the state of the Indonesian economy. In the previous article in this month’s report, we discussed the 4.95 percent year-on-year (y/y) GDP growth rate of Indonesia in Q3-2024. In the article you are reading right now, we’re going to take a closer look whether the country’s economic growth can accelerate (or decelerate) in the last quarter of the year.

Lanjut baca ›

The manufacturing sector is a strategic one for the Indonesian economy (albeit it is facing a number of major challenges). The Indonesian government therefore has high hopes and ambitions for the national manufacturing sector.

Lanjut baca ›

Over the past five decades the Indonesian economy has evolved from one being highly dependent on agriculture to one in which industry and services dominate the national economy.

Lanjut baca ›

After the surprise in February 2020 (when – contrary to expectations and in stark contrast to the global trend – manufacturing activity in Indonesia soared), matters turned normal in March 2020. In line with expectations, Indonesia’s manufacturing production and new orders contracted at record rates in March, making companies decide to cut back sharply on their purchasing activity and input inventories. Business conditions in fact deteriorated at a rate not seen before in the history of the Purchasing Managers’ Index (PMI) survey.

Lanjut baca ›

An alarming report was released by the World Trade Organization (WTO) on 1 October 2019. In the report the WTO notes that ongoing global trade tensions, led by tariff troubles between the United States and China, are doing harm to global economic growth in ways not seen since the financial crisis one decade ago.

Lanjut baca ›

Manufacturing activity in Indonesia increased in June 2019 albeit at a much slower pace than in the preceding month. Expansion in the nation’s manufacturing sector was dragged down by softer expansion in both production and new orders.

Lanjut baca ›

Manufacturing activity in Indonesia improved in May 2019 due to an increase in output and new orders. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rose from 50.4 in April 2019 to 51.6 in the following month, its highest position in nine months (a reading below 50.0 indicates contraction, while a reading above 50.0 indicates expansion in manufacturing activity).

Lanjut baca ›

Based on the latest data from IHS Markit, the headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers’ Index (PMI) fell modestly to a reading of 50.5 in October 2018 (from 50.7 in the preceding month). The reading represents a marginal improvement in the health of Indonesia’s manufacturing sector.

Lanjut baca ›

Manufacturing activity in Indonesia expanded in September 2018. However, the pace of growth slowed compared to the preceding month. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) declined from August's 26-month high of 51.9 to 50.7 in September (a reading of 50.0 separates contraction from expansion in the manufacturing sector).

Lanjut baca ›

Rising domestic demand caused Indonesia's August manufacturing activity to grow at the fastest pace in more than two years. As a result local manufacturing companies added new people to their staff. The headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) grew to 51.9 in August 2018 (up from 50.5 in the preceding month), further above the 50.0 level that separates expansion from contraction in terms of manufacturing activity.

Lanjut baca ›