The S&P Global Indonesia Manufacturing PMI slipped to 50.4 in September 2025 from August’s 5-month high of 51.5, but still signaled a second month of expansion in factory activity. New orders continued to rise, though at a softer pace, while output fell for the fifth time in six months amid weak client purchasing power. External demand also remained subdued, with exports declining for the second time in three months. Despite this, firms raised input purchases and increased hiring for a second month to meet demand, while additional capacity helped reduce backlogs at an unchanged pace. Supplier delivery times improved the most in nearly two years, aided by direct shipments. On the price front, input cost inflation quickened to its highest since February on broad-based rises in raw materials, while output charges rose only modestly. Finally, business confidence strengthened to a four-month high, supported by optimism over demand conditions.