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Today's Headlines Manufacturing Industry

  • Manufacturing Activity Indonesia Contracts Again in July 2017

    Manufacturing Activity Indonesia Contracts Again in July 2017

    Manufacturing activity in Indonesia fell further in July 2017, touching a one-year low. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) was recorded at 48.6 in July, falling deeper into contraction. In the preceding month the index was 49.5 (a reading of 50.0 separates contraction from expansion). Declining new orders caused a sharp and rapid drop in output in Indonesia's manufacturing sector. This then led to job losses, fewer quantities of inputs purchased and depletion in stock levels.

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  • Growth of Manufacturing Activity in Indonesia Eased in May 2017

    Growth of Manufacturing Activity in Indonesia Eased in May 2017

    Growth of manufacturing activity in Indonesia eased in May 2017. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) dropped to 50.6 in May from a reading of 51.2 in the preceding month. Last month manufacturing activity in Indonesia had hit a 10-month high, hence the lower reading indicates a loss of growth momentum for Indonesia's manufacturing sector. However, it remained comfortably above the boom-or-bust line of 50.0 that separates expansion from contraction.

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  • Nikkei Indonesia Manufacturing PMI Rises Again in April 2017

    Nikkei Indonesia Manufacturing PMI Rises Again in April 2017

    Good news for Indonesian manufacturers. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) recorded a second consecutive month of growth, touching a 10-month high of 51.2 in April 2017 (from a reading of 50.5 in the preceding month), as further expansion in order books encouraged local companies to boost production, while the relatively weaker rupiah rate (versus the US dollar) exerted upward pressure on input prices, with cost inflation reaching an 18-month peak. Subsequently, output prices rose at an accelerated pace.

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  • Manufacturing Activity Indonesia Contracts in February 2017

    Manufacturing Activity Indonesia Contracts in February 2017

    Amid falling output and declining new orders as well as sharply rising input costs, Indonesia's manufacturing activity contracted again in February 2017. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) fell to a reading of 49.3 in February, sliding from 50.4 in the preceding month (a reading below 50.0 indicates contraction, while a reading above 50.0 points at expansion of the manufacturing sector). Meanwhile, buying levels remained unchanged.

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  • Manufacturing Sector Indonesia Absorbs 16.3 Million Workers

    Manufacturing Sector Indonesia Absorbs 16.3 Million Workers

    Indonesia's manufacturing sector is targeted to provide employment to a total of 16.3 million workers in 2017, up 5 percent from 15.5 million workers in the preceding year. As such, development of the manufacturing industry is a good strategy to reduce Indonesia's unemployment rate. Industries within the manufacturing sector of Indonesia that absorb the highest number of workers are the textile, footwear, food & beverage, and automotive industries.

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  • Manufacturing Activity Indonesia Improves, Concerns Persist

    Manufacturing Activity Indonesia Improves, Concerns Persist

    Indonesia's manufacturing activity improved in the first month of 2017. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) grew to a reading of 50.4 in January 2017, from a reading of 49.0 in the preceding month supported by a slight increase in order books (a reading above 50 signals expansion of the nation's manufacturing industry, while a reading below 50 indicates contraction). The latest data end a three-month contraction streak in Indonesia's manufacturing sector.

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  • Economy of Indonesia: Smelters Boost Role Manufacturing Industry

    Economy of Indonesia: Smelters Boost Role Manufacturing Industry

    The Industry Ministry of Indonesia targets to see the contribution of the manufacturing industry toward the nation's gross domestic product (GDP) rise further above 20 percent in 2017. This growth is supported by the start of operations of several new smelters. I Gusti Putu Suryawirawan, Director General of Metal, Machinery, Transportation Equipment & Electronic Industries at the Indonesian Industry Ministry, said ten new smelters will start the production phase this year.

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  • Manufacturing Activity in Indonesia Contracts in December 2016

    Manufacturing Activity in Indonesia Contracts in December 2016

    Manufacturing activity in Indonesia continued to contract in the last month of 2016. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) slid to a reading of 49.0 in December 2016, from 49.7 in the preceding month (a reading below 50.0 signals contraction, while a reading above 50.0 signals expansion). It was the third consecutive month of contraction in the manufacturing sector of Southeast Asia's largest economy. The survey also showed that Indonesia's manufacturing exports showed their steepest fall since October 2015.

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  • Indonesia's Manufacturing Sector Continued to Contract

    Indonesia's Manufacturing Sector Continued to Contract

    Indonesia's manufacturing sector continued to contract in November 2016 (the second straight month of contraction), albeit at a slower pace. Indonesia's Nikkei Manufacturing Purchasing Managers' Index (PMI) climbed to a reading of 49.7 points last month from 48.7 points in October 2016 (a reading above 50.0 signals expansion of the manufacturing sector, while a reading below 50.0 indicates contraction). Contraction in November was largely blamed on subdued demand and floods in parts of Indonesia.

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  • Manufacturing Activity Indonesia Contracts in October 2016

    Manufacturing Activity Indonesia Contracts in October 2016

    Again concerns about Indonesia's manufacturing sector flared up after it was reported this morning that the Nikkei Indonesia manufacturing purchasing managers' index (PMI) declined to a reading of 48.7 in October 2016 (dropping significantly from 50.9 in September). It was the first time since July 2016 that Indonesia's manufacturing PMI contracted (a reading below 50.0 signals contraction). Employment, new orders as well as output all contracted in October, while pre-production stocks rose (slightly).

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Latest Columns Manufacturing Industry

  • Manufacturing Activity in Indonesia at Highest Level since August 2018

    Manufacturing Activity in Indonesia at Highest Level since August 2018

    Manufacturing activity in Indonesia improved in May 2019 due to an increase in output and new orders. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rose from 50.4 in April 2019 to 51.6 in the following month, its highest position in nine months (a reading below 50.0 indicates contraction, while a reading above 50.0 indicates expansion in manufacturing activity).

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  • Indonesia’s Manufacturing Activity Rose in December but External Conditions Remain Gloomy

    Indonesia’s Manufacturing Activity Rose in December but External Conditions Remain Gloomy

    Although conditions remain challenging, there is some room for optimism as manufacturing activity in Indonesia reportedly climbed in the last month of 2018. In December 2018 the Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rose to a reading of 51.2, up from 50.4 in the previous month (a reading over 50 indicates expansion in the nation’s manufacturing sector, while a reading below 50 points at contraction).

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  • Indonesia's Manufacturing Activity Lost Further Momentum in October

    Manufacturing Sector: Manufacturing Activity Lost Further Momentum in October

    Based on the latest data from IHS Markit, the headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers’ Index (PMI) fell modestly to a reading of 50.5 in October 2018 (from 50.7 in the preceding month). The reading represents a marginal improvement in the health of Indonesia’s manufacturing sector.

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  • Manufacturing Growth Indonesia Slowed in September 2018

    Manufacturing Growth Indonesia Slowed in September 2018

    Manufacturing activity in Indonesia expanded in September 2018. However, the pace of growth slowed compared to the preceding month. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) declined from August's 26-month high of 51.9 to 50.7 in September (a reading of 50.0 separates contraction from expansion in the manufacturing sector).

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  • Growth in Indonesia's Manufacturing Sector Picks up in August 2018

    Growth in Indonesia's Manufacturing Sector Picks up in August 2018

    Rising domestic demand caused Indonesia's August manufacturing activity to grow at the fastest pace in more than two years. As a result local manufacturing companies added new people to their staff. The headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) grew to 51.9 in August 2018 (up from 50.5 in the preceding month), further above the 50.0 level that separates expansion from contraction in terms of manufacturing activity.

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  • Indonesia's Manufacturing Activity Up, But Conditions Remain Weak

    Indonesia's Manufacturing Activity Up, But Conditions Remain Weak

    Although manufacturing activity in Indonesia rose slightly in July 2018, there are a number of reasons to be concerned. The headline seasonally adjusted Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) indeed grew modestly from a reading of 50.3 in June to 50.5 in July (a reading of 50.0 separates contraction from expansion in the nation's manufacturing activity). However, overall conditions remain lacklustre in Southeast Asia's largest economy.

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  • Manufacturing Activity Indonesia at 23-Month High in May 2018

    Manufacturing Activity Indonesia at 23-Month High in May 2018

    The Indonesia Nikkei Manufacturing Purchasing Managers Index (PMI) showed a slight improvement to a reading of 51.7 in May 2018, up from 51.6 in the preceding month, meaning that activity in Indonesia's manufacturing sector expanded last month (a reading above 50.0 indicates expansion, while one below 50.0 indicates contraction). The PMI index measures the activity level of purchasing managers in the manufacturing sector. This survey is closely watched as purchasing managers usually have early access to data about their company's performance, which can be a leading indicator of overall economic performance.

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  • Widodo Launches Roadmap for Industry 4.0: "Making Indonesia 4.0"

    Widodo Launches Roadmap for Industry 4.0: "Making Indonesia 4.0"

    The Indonesian government officially launched the roadmap called "Making Indonesia 4.0" earlier this week. Industry 4.0 is a term that refers to the fourth industrial revolution in manufacturing and industry. It includes major innovations in the digital technology, biology and hardware automations, and also implies that cyber-physical systems can make their own basic decisions, hence becoming increasingly self-ruling.

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