Markit economist Pollyanna De Lima stated that Indonesia's PMI - which involves a composite of manufacturing output, new orders, export and employment measures - rose for the first time since September 2014 supported by higher production brought about by higher new orders. These new order came primarily from Indonesia, not from abroad. In fact, export orders continued to slide.

Employee numbers in Indonesia remained largely unchanged in the manufacturing sector. This is in fact good news as we have seen job cuts in the past 19 months in Southeast Asia's largest economy.

De lima noted: "Though the sector has finally moved into expansion territory, firms will still be looking for signs of a convincing recovery taking hold before hiring additional workers. If cost inflation continues to ease, Indonesian manufacturers may then look to gain a competitive edge through cutting output prices."