Indonesia's Manufacturing Sector Shows Strong Growth in November 2025

Significant Expansion in Manufacturing Activity

Indonesia's manufacturing sector continued its positive trajectory in November 2025, with the Manufacturing Purchasing Managers' Index (PMI) rising to 53.3 from 51.2 in October. This marks the fourth consecutive month of expansion and the highest reading since February 2025 when it was at 53.06. The substantial increase in PMI indicates a robust growth in manufacturing activity, driven by both seasonal factors and supportive economic policies.

Factors Driving Manufacturing Growth

According to Faisal Rachman, Head of Macroeconomic and Financial Market Research at Permata Bank, two primary factors contributed to the surge in PMI. Firstly, seasonal demand patterns played a crucial role as domestic demand strengthened heading into the year's end. Secondly, the stimulus policies implemented by the government and Bank Indonesia provided significant support to economic growth and boosted consumer purchasing power. These factors combined to create a favorable environment for the manufacturing sector, resulting in the observed expansion.

Implications for Economic Growth

The strong performance of the manufacturing sector in November 2025 is a positive indicator for Indonesia's overall economic growth. The manufacturing PMI is considered a leading indicator of economic activity, and a reading above 50 signifies expansion. The current reading of 53.3 suggests that the manufacturing sector is not only growing but doing so at a significant pace. This bodes well for overall economic performance, particularly in terms of industrial production and employment.

Conclusion

The November 2025 manufacturing PMI data highlights the resilience and growth potential of Indonesia's manufacturing sector. With continued support from government policies and seasonal demand, the outlook for the sector remains positive. As Indonesia moves forward, maintaining a conducive business environment and supportive monetary policies will be crucial in sustaining this growth momentum.