Insight

Manufacturing Slumped, GDP Slowed & Layoffs Increased +250% in Indonesia

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Algo Research Team

Economics | May 05, 2025 | Views: 897

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Key Summary:

  • Indonesia's manufacturing PMI declined the most since 2021
  • Significant increase in layoff, reaching +250% growth in Feb-25
  • 1Q25 GDP growth slowed to +4.87% YoY, slightly below estimates

A weak start for Indonesia where its manufacturing purchasing manager index (PMI) crashed to 46.7 in Apr-25, while layoff surged by +250% YoY in Feb-25, prompting urgent needs for both fiscal and monetary policy support.


Manufacturing is bleak: Indonesia’s PMI declined significantly from 52.4 in Mar-25 to 46.7 in Apr-25, where a reading below 50 means a contraction in manufacturing activity.

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