Indonesia’s PMI May 2025

According to the latest data from S&P Global Market Intelligence, the Indonesia’s Purchasing Managers' Index (PMI) reached 47.4 in May 2025, below the 50-point threshold that separates growth from contraction.

The national manufacturing sector continues to face pressure due to global economic uncertainty and a surge in imported finished goods in the domestic market.

Recent U.S trade policies, including new import tariffs, have added challenges for exporters, particularly those targeting the American market. Logistics constraints and unfavorable weather conditions have also impacted shipments.

Rising raw material costs have further affected production volumes and made it harder for local industries to compete with more efficient international players.

Despite these difficulties, many industry players remain confident and continue to invest. In the first quarter of 2025, 359 manufacturing companies began building new production facilities, creating nearly 98,000 jobs.

The Association of Southeast Asian Nations (ASEAN) is a political and economic union of ten members, has 667 million people and a territory of 4.5 million Km2; is currently the third largest economy in Asia-Pacific and the fifth largest in the World. The ASEAN Economic Community (AEC) has a combined GDP of USD 4.2 trillion, according to estimates for 2024.