Indonesia’s Manufacturing Sector Improves in Q1‑2026: BI

RRI.CO.ID, Jakarta - Bank Indonesia (BI) reported that the manufacturing sector improved in the first quarter of 2026 (Q1‑2026), entering an expansionary phase with the BI Prompt Manufacturing Index (PMI‑BI) at 52.03 percent. The figure was higher than the 51.86 percent recorded in the previous quarter.

BI Communication Department Director Anton Pitono said the expansion was reflected in key components. “Based on its components, the volume of finished goods inventory, production volume, and total order volume were all recorded in the expansion phase,” Anton said on Friday, April 17, as quoted on BI’s official website.

The finished goods inventory index rose to 54.43 percent from 53.46 percent in Q4‑2025, while production volume increased to 54.07 percent from 53.46 percent. Total order volume stood at 53.20 percent, slightly lower than 53.31 percent in the previous quarter.

Anton noted that most sub‑sectors also recorded expansion. The highest indices were in the paper and paper products industry, printing and reproduction of recorded media (57.27 percent), the leather, leather goods, and footwear industry (55.83 percent), and the food and beverage industry (55.33 percent).

Looking ahead, BI projects the manufacturing PMI in Q2‑2026 will remain in expansion, rising to 52.26 percent. The growth is expected to be driven by production volume, finished goods inventory, and total order volume.

“The majority of sub‑sectors are projected to be in the expansion phase, with the highest indices in the furniture industry; leather, leather goods, and footwear industry; and the food and beverage industry,” Anton said. ***