Indonesia's Manufacturing Sector Maintains Expansion Momentum

Mixed Performance Across Different Segments

Indonesia's Manufacturing Confidence Index (IKI) for November 2025 remained in expansion territory at 53.45, representing a marginal decrease of 0.05 points from October's 53.50. Despite this slight monthly slowdown, the index demonstrated a notable improvement of 0.50 points compared to November 2024's level of 52.95. The Ministry of Industry's spokesperson, Febri Hendri Antoni Arief, highlighted that domestic-oriented manufacturing sectors showed strengthening signs, with the Domestic IKI rising by 0.37 points to 52.71 from 52.34 in the previous month. Conversely, export-oriented manufacturing experienced a minor contraction, with its IKI declining by 0.17 points to 54.18 from 54.35.

Key Drivers and Trends

The positive trend in domestic manufacturing was supported by a significant increase in new orders, which rose by 0.68 points to reach 55.93. This uptick in demand suggests continued growth momentum in the manufacturing sector, particularly driven by domestic consumption. The mixed performance between domestic and export-oriented industries indicates varying levels of resilience across different segments of Indonesia's manufacturing landscape.

Implications for Economic Outlook

The overall IKI reading above 50 indicates that the manufacturing sector remains in expansion territory, albeit at a slightly slower pace than the previous month. The improvement from the previous year's level suggests positive year-on-year growth momentum. The contrasting performance between domestic and export-oriented manufacturing may reflect different market dynamics and external factors influencing these segments.