Indonesia Manufacturing and Business Activity Grow in Q2 2026

Bank Indonesia reported that Indonesia's business and manufacturing sectors strengthened during the second quarter of 2026. The Prompt Manufacturing Index reached 51.43, indicating expansion in total orders, production volume, and finished goods inventories, with the machinery and equipment industry leading growth.

A central bank survey showed business activity rose to a weighted net balance of 12.97 percent, up from 10.11 percent in the previous quarter. This increase was driven by the mining, construction, and agriculture sectors, supported by high demand during school vacations and religious holidays.

Communications Executive Director Ramdan Denny Prakoso stated that business financial conditions remained sound due to profitability, healthy liquidity, and easy credit access. Bank Indonesia projects further growth in the third quarter, forecasting the manufacturing index will rise to 52.32.