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Indonesia's Economy Leans on Exports as Demand Weakens

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Algo Research Team

Economics | Jun 04, 2025 | Views: 177

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Key Summary:

  • Domestic activity slows amid ongoing manufacturing contraction
  • Non-oil & gas exports improve, driven by industrial and agricultural output
  • Monthly deflation recorded as food and beverage costs decline

The Indonesian government has released the latest monthly data, showing a mixed picture of positive export performance but a continued weakness in domestic activities such as consumption and manufacturing.


First, weak manufacturing: Indonesia recorded a manufacturing purchasing managers index (PMI) of 47.4 in May-25, where a reading below 50 signals contraction or subdued activity.

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