Indonesia’s manufacturing sector showed signs of recovery in August 2025, with the Purchasing Managers’ Index (PMI) rising to 51.5 from 49.2 in July, marking its first expansion in five months. The rebound was driven by stronger domestic and export demand, particularly the steepest rise in exports since September 2023. Manufacturers responded by modestly increasing employment and purchasing activity, reflecting renewed optimism about future output. Economists noted that while input cost inflation remained solid, it was relatively subdued compared to historical averages, though rising import prices—exacerbated by a strong U.S. dollar and a weaker rupiah—remain a concern. Despite the positive momentum, political unrest poses a risk to sustained industrial recovery. Recent nationwide protests, sparked by the death of a motorcycle taxi driver during a police operation, have raised concerns among foreign investors and disrupted business operations. Indonesia's Industry Minister, Agus Gumiwang Kartasasmita, emphasized the need for national stability to maintain manufacturing confidence. President Prabowo Subianto acknowledged the public’s right to peaceful protest but warned against elements he described as “treasonous.” With events canceled and companies shifting to remote work, uncertainty over further demonstrations continues to cloud the outlook for Indonesia’s economic and industrial performance.Source: https://www.thejakartapost.com/business/2025/09/02/ri-manufacturing-back-in-expansion-after-monthslong-slump.html (ICE GIACARTA)

Fonte notizia: The Jakarta Post, 2 September 2025