December 1, 2025 | 12:22 pm
TEMPO.CO, Jakarta - The Indonesian manufacturing sector has recorded an expanded Purchasing Managers' Index (PMI) in November 2025 at the level of 53.3, according to the Standard & Poor’s Global Ratings (S&P). The manufacturing PMI last month improved compared to October, with 51.2, marking the highest standing since February 2025 at 53.6.
S&P Global Market Intelligence economist Usamah Bhatti said the November expansion was driven by the renewed increase in output volume and the fastest growth in new orders since August 2023.
"The domestic economy was a key driver for demand as 2025 nears its end, as firms recorded a steeper reduction in new export orders," he said in an official statement on Monday, December 2, 2025.
Usamah stated that the growing demand resulted in an uptick in production levels during November for the first time in three months. Companies responded to the increased workload by raising the purchasing level and employment rate, while also noting signs of pressure on capacity with the sharpest increase in backlogs since September 2021.
S&P stated that companies are striving to maintain a sufficient production input stock, leading to the strongest accumulation in stocks of purchases in eight months. However, there were additional strains on supplies due to the average lead time for input deliveries lengthening twice in a row, along with delayed deliveries and adverse weather.
On the other hand, producers also noted increasingly intensive price pressures towards the end of the year. Companies sought to pass on the increase in input costs to clients by raising factory gas prices to the highest level in over a year and a half.
" Cost inflation was at the highest for nine months amid rising raw material prices and unfavourable exchange rate fluctuations," said Usamah.
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