Indonesia reports economic stability with rising manufacturing PMI

President Prabowo Subianto held a limited meeting with cabinet ministers to discuss Indonesia’s national economic developments, including inflation, manufacturing strength, and state budget management. Finance Minister Suahasil Nazara reported that inflation remains on track at 3.23 percent, within the government’s target range of 1.5 to 3.5 percent.

Economic Coordinating Minister Airlangga Hartarto reported that the manufacturing Purchasing Managers Index (PMI) rose to 54 in October 2026, up from 52 in September. This increase indicates an expansion in the manufacturing sector and growing optimism among businesses regarding future demand. Additionally, Indonesia recorded a trade surplus of 3.36 billion USD in September 2026, driven by commodity exports such as coal, natural gas, and palm oil.

In the food and beverage sector, Minister of Industry Sarmuji noted that the industry contributed 41.86 percent to non-oil and gas manufacturing GDP in the first half of 2026, employing approximately 6.9 million people. Meanwhile, Bank Indonesia Governor Destry Damayanti stated that while producer inflation has reached 7 percent, it has not yet significantly impacted consumer purchasing power due to differences in commodity compositions.