RRI.CO.ID, Jakarta: Indonesia’s manufacturing sector continues to demonstrate resilience amid global uncertainties, including geopolitical conflicts, supply chain disruptions, and rising raw material prices. This is reflected in the country’s Manufacturing Purchasing Managers’ Index (PMI), which stood at 50.1 in March 2026—remaining in expansion territory.

“We were both surprised and grateful that amid extremely challenging conditions, both globally and domestically, Indonesia’s manufacturing PMI remains above 50 on average. This indicates strong resilience in our manufacturing sector,” said Minister of Industry Agus Gumiwang Kartasasmita in an official statement in Jakarta on Wednesday , April 1, 2026.

Throughout the first quarter of 2026, Indonesia’s manufacturing PMI consistently remained in the expansion phase, recording 52.6 in January and rising to 53.8 in February, before moderating to 50.1 in March. Despite the slowdown, the index remaining above 50 signals continued industrial growth.

The Minister underscored that this achievement is supported by the strength of Indonesia’s industrial structure and relatively stable domestic demand.

“Our industrial fundamentals remain strong. Domestic demand continues to be the main pillar, enabling us to withstand significant external pressures,” he said.

Globally, Indonesia’s PMI remains competitive. Several major economies also experienced a slowdown in manufacturing activity in March 2026. Japan, for instance, recorded a PMI of 51.6, down from the previous month, although still in expansion territory.

Within ASEAN, Indonesia remains among countries with expanding PMI levels, alongside Thailand (54.1), Malaysia (50.7), Myanmar (51.5), and the Philippines (51.3). However, not all countries have been able to maintain consistent expansion momentum, indicating that global pressures are widespread across regions.

Globally, PMI surveys also show rising inflationary pressures and supply chain disruptions due to geopolitical conflicts, particularly in the Middle East, which have driven up energy and raw material costs.

“From a global perspective, almost all countries are facing similar pressures, both in terms of costs and supply chains. In this context, Indonesia’s ability to remain in expansion territory is certainly an achievement worth appreciating,” Agus affirmed.

In March 2026, there was a decline in output and new orders, in line with disruptions in raw material supply and rising input costs. Delivery times for raw materials also recorded the sharpest delays since October 2021.

Cost pressures have increased significantly, with raw material price inflation reaching its highest level in the past two years. This has prompted manufacturers to adjust selling prices to maintain business sustainability.

Nevertheless, industry players remain optimistic about future prospects. According to the March 2026 Industrial Confidence Index (IKI) survey, 73.7 percent of respondents reported that their business activities were improving or stable, while 71.8 percent expressed optimism about business conditions over the next six months.

The Ministry of Industry continues to implement strategic measures to maintain the resilience of the manufacturing sector, including strengthening industrial structure, increasing production capacity utilization, and optimizing the domestic market as a key growth driver.

In addition, the government is focused on ensuring smooth raw material supply and industrial logistics, as well as creating a conducive business environment to keep the manufacturing sector competitive amid global dynamics.

“Together with relevant ministries and agencies, we will continue to ensure that domestic industries remain active, adaptive, and competitive. This resilience must be maintained, as the manufacturing sector is the backbone of the national economy,” Agus conveyed.