Indonesia's Manufacturing Sector Shows Strong Recovery as PMI Hits 53.3

November PMI Reflects Continued Expansion

Indonesia's manufacturing activity demonstrated significant improvement in November 2025, with the Manufacturing Purchasing Managers' Index (PMI) rising to 53.3, up from 51.2 in October. This marks the fourth consecutive month that the PMI has remained in expansion territory, indicating sustained growth in the manufacturing sector.

Key Drivers of PMI Improvement

The November PMI increase was primarily driven by two key factors: increased production volume and a surge in new orders. The rate of new orders was particularly noteworthy, recording the fastest growth since August 2023. This surge in demand has enabled manufacturers to ramp up production, contributing to the overall improvement in the PMI reading.

Recovery Trend Following September Slowdown

The current PMI reading represents a recovery from a slowdown in September when the index dipped to 50.4. The rebound in subsequent months suggests that the manufacturing sector is gaining momentum, likely supported by ongoing domestic economic recovery efforts.

Implications for Indonesia's Economy

The sustained expansion in manufacturing activity is a positive indicator for Indonesia's broader economic health. As the manufacturing sector continues to grow, it is likely to contribute positively to overall economic performance, potentially supporting job creation and investment growth.