Indonesia’s manufacturing sector contracted in June, with the Purchasing Managers’ Index (PMI) falling to 46.9, signaling a downturn in industrial activity.
The reading, which sits below the 50-point threshold that separates expansion from contraction, highlights the persistent headwinds facing the archipelago’s factory output.
He noted that while the immediate outlook for manufacturing is pressured by these logistical challenges, the long-term projection for the sector remains optimistic.
Economy Coordinating Minister Airlangga Hartarto attributed the decline to disruptions in global supply chains.
He noted that while the immediate outlook for manufacturing is pressured by these logistical challenges, the long-term projection for the sector remains optimistic.
The minister’s comments suggest that the contraction is driven by external friction rather than a fundamental loss of domestic demand.
The data adds to a broader narrative of slowing private-sector growth in emerging economies.