Indonesian Manufacturing Sector Returns to Growth in December 2024

The S&P Global Indonesia Manufacturing Purchasing Manager’s Index moved back above the crucial 50 no-change mark in December 2024.

IDXChannel - The S&P Global Indonesia Manufacturing Purchasing Manager’s Index moved back above the crucial 50 no-change mark in December 2024, signaling growth of the sector for the first time since June 2024. 

The PMI improved to 51 last month, from 49 in November 2024. The latest PMI reading was also the highest since May 2024. 

"Indonesia's manufacturing economy ended 2024 on a positive note, expanding for the first time since the  middle of the year amid evidence of a pickup in sales and output," S&P Global Market Intelligence Economics Director Paul Smith in a media release on Thursday (2/1/2025).

"Moreover, there is great hope that this positive  trend can be sustained, with many firms expecting a rise in production in the year ahead as macroeconomic  conditions stabilise and purchasing power amongst  clients improves. Employment and purchasing activity  increased as a result," Smith said.

However, less positive were trends in prices with cost pressures strengthening a little since November 2024 and  output charges raised again. 

"Whilst inflation remains broadly contained for now and below long-run averages,  price trends will of course be watched closely in the new  year," he stated. (Wahyu Dwi Anggoro)