In July 2025, Indonesia’s manufacturing Purchasing Managers Index (PMI) rose to 49.2—still below the 50-point expansion threshold, but showing notable improvement from June's 46.9, suggesting a slower pace of contraction. Concurrently, the Industrial Confidence Index (IKI) climbed to 52.89 from 51.84. This improvement was supported by three key indicators: the new orders index edged up slightly to 54.40, finished goods inventory increased significantly to 54.99, and the production index improved by 2.35 points to reach 48.99, though it remained in contraction. 

Building on these developments, Bank Mandiri’s Office of the Chief Economist sees promising potential for Indonesia’s manufacturing sector to boost its export performance. Areas of opportunity include leveraging the tariff agreement with the United States and advancing the Indonesia-EU Comprehensive Economic Partnership Agreement (I-EU CEPA), both of which could enhance global competitiveness. Capitalizing on markets facing higher tariffs elsewhere, the manufacturing sector is expected to rebound, serve as a key driver of economic growth, and create more employment opportunities. 

Source:
Industri Manufaktur Berpeluang Meningkatkan Kinerja Ekspor