Indonesia’s external debt in February 2014 amounted to USD $272.1 billion, thus having increased 7.4 percent (year-on-year) from the same month a year earlier. Outstanding external debt as of end-February 2014 consisted of public sector debt (USD $129.0 billion) and private sector debt (USD $143.1 billion). The growth pace of Indonesia's external debt in February 2014 was slightly higher than the 7.2 percent (yoy) growth pace recorded in January 2014. These data were taken from Bank Indonesia's website.

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Indonesia's HSBC purchasing manager index (PMI) hit a seven-month low at 50.1 in March 2014, down from 50.5 in the previous month. According to Indonesia's Finance Minister Chatib Basri, there is no need to revise government policy to combat the slowdown in the country's manufacturing sector as the government has deliberately slowed down the economy in order to curtail the wide current account deficit. The government of Indonesia aims to reduce the current account deficit to 2.5 percent of the country's GDP by the end of 2014.

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Indonesia's February 2014 HSBC manufacturing purchasing managers' index (PMI), which measures the performance of the country's manufacturing industry, slipped to 50.5 from 51.0 in the previous month, thus indicating slowing growth (a reading above 50 indicates expansion in manufacturing activity, while a reading below 50 indicates contraction). Despite continued strong export orders, domestic demand weakened amid massive floods and volcanic eruptions at the start of the year.

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Although China's HSBC Purchasing Managers’ Index (PMI) in January 2014 fell below the 50.0 mark thus indicating contracting manufacturing, other Asian countries, including Indonesia, posted expanding manufacturing. Indonesia's HSBC Manufacturing PMI read 51.0 in the first month of the year, its highest reading since June 2013 and up from 50.9 in December 2013. However, this limited expansion also raised concerns that the policy tightening of Indonesia's central bank (Bank Indonesia) has not been as effective as hoped for.

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Deputy Trade Minister Bayu Krisnamurthi said that the Indonesian government is preparing two strategic steps to anticipate the negative impact of the winding down of the Federal Reserve's quantitative easing program. In January 2014, the Fed's bond-buying program will be reduced from USD $85 billion to USD $75 billion per month. The two strategic steps, which will enhance financial stability in Southeast Asia's largest economy, involve the curtailing of Indonesia's current account deficit and high inflation.

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The unemployment rate of Indonesia is forecast to ease to 6.03 percent (7.24 million people) in 2014 from 6.25 percent (7.39 million people) in August 2013. The Indonesian government expects a reduction in the unemployment rate as the country's economic growth is assumed to grow strongly and thus will provide more job opportunities for Indonesians next year. Various institutions, including the IMF, World Bank and the Indonesian government, expect Indonesia's GDP growth in 2014 to range between 5.3 and 6.0 percent.

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Grand Kartech, an Indonesian engineering and manufacturing company, will be listed on the Indonesia Stock Exchange (IDX) today (08/11). The company offers 163.64 million shares to the public through its initial public offering (IPO). The stock price that was set for the IPO amounts to IDR 275 (USD $0.024) per share and the company expects to reap IDR 45 billion (USD $4.0 million) through this corporate action. Demand for Grand Kartech's shares has been high as the IPO is oversubscribed almost 44 times.

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Indonesia Investments has updated the company profile of Krakatau Steel, Indonesia's and Southeast Asia's largest steel producer. The company, which is for 80 percent government owned, has a crude steel production capacity of 2.45 million tons per year. However, through a lucrative joint venture with Posco, the world's third-largest steel producer, it will expand production capacity significantly in the years ahead. Besides steel production, the company has expanded into other industries.

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Two sectors of the Indonesian economy stand out as most popular destinations of foreign investments in the first six months of 2013. These are Indonesia's manufacturing sector and the construction, property and real estate sector, which grew 46.7 percent and 100.6 percent respectively compared to the same period in 2012. Based on data of the Indonesia Investment Coordinating Board (BKPM), foreign direct investments in Indonesia increased 23 percent to USD $14.1 billion in the first semester of 2013.

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Indonesia's mining sector is still the biggest beneficiary of both domestic and foreign direct investments. Investments in Indonesia's mining sector rose 23.8 percent in the first six months of 2013 compared to the same period in 2012. This may be somewhat surprising as global economic turmoil in recent years has resulted in falling commodity prices and weak mining exports. Investments are the most important pillar of economic growth in Indonesia after the country's vibrant consumer industry.

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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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Indonesia's manufacturing activity improved in April 2018, touching its fastest growth pace in 22 months, on the back of strengthening domestic demand. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rose to a reading of 51.6 in April 2018, up from 50.7 in the preceding month (a reading above 50.0 indicates expansion in manufacturing activity, while a reading below 50.0 indicates contraction). However, business confidence towards the business outlook (for the year ahead) weakened to the lowest point since December 2012.

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Indonesia's Nikkei Manufacturing Purchasing Managers' Index (PMI) eased to 50.7 in March 2018 from a reading of 51.4 in the preceding month (when manufacturing activity touched a 20-month high in Southeast Asia's largest economy). Softer expansion in output and new orders were cited as reason for slowing growth. A reading above 50.0 indicates expansion in manufacturing activity, while a reading below 50.0 indicates contraction.

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Indonesia's manufacturing activity improved markedly in February 2018 with the Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rising to a reading of 51.4, from 49.9 in January (the 50.0 level separates contraction from expansion). It was the fastest pace of growth for Indonesia's manufacturing sector since June 2016; growth that came on the back of rising output and new orders.

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One method to ignite structurally high economic growth for a sustained period of time in Indonesia is to encourage the development of the country's stagnant manufacturing sector. A thriving manufacturing industry (especially when it can export domestically manufactured products) will accelerate economic growth and generate plenty of employment opportunities (which will then encourage rising household consumption).

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Manufacturing activity in Indonesia continued to contract in January 2018 (for the second month in a row) albeit at a slower pace. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) rose from 49.3 in December 2017 to a reading of 49.9 in January (a reading below 50.0 indicates contraction, while a reading above 50.0 indicates expansion in manufacturing activity).

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The manufacturing industry of Indonesia remains in a troublesome state. The latest Nikkei Indonesia manufacturing purchasing managers' Index (PMI) reading declined to 49.3 in December 2017, from 50.4 in the preceding month (a reading below 50.0 indicates contraction, while above 50.0 indicates growth in the country's manufacturing activity). It was the first time since July 2017 that Indonesia's manufacturing activity contracted.

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Indonesia is being threatened by deindustrialization. There have been reports that rising minimum wages, the low quality of local human resources, or scarcity of local raw materials have been encouraging companies in certain industries to relocate to other countries in Asia. This partly explains why the manufacturing industry's role toward Indonesia's gross domestic product (GDP) has been on the decline.

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Indonesia's Nikkei manufacturing purchasing managers' index (PMI) grew to a reading of 50.4 in November 2017, slightly improving from 50.1 in the preceding month when broad stagnation was detected. A reading above 50.0 indicates expansion in the manufacturing sector, while a reading below 50.0 indicates contraction. Indonesia's November manufacturing growth was primarily caused by accelerating expansion in output and new orders.

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Activity in Indonesia's manufacturing industry tumbled into contraction again in June 2017, after having experienced four months of straight growth. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) declined to a reading of 49.5 in June, from 50.6 in the preceding month (a reading of 50.0 separates contraction from expansion). Contraction in Indonesia's manufacturing sector is particularly blamed on a stagnation in domestic order books.

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