🇮🇩 Indonesia Manufacturing PMI – What Traders Need to Know
The S&P Global Indonesia Manufacturing PMI tracks the health of the factory sector through surveys of around 400 companies.
📊 PMI Breakdown & Weights
- New Orders: 30%
- Output: 25%
- Employment: 20%
- Suppliers’ Delivery Times: 15% (inverted)
- Stocks of Purchases: 10%
🔍 How to Interpret It
> 50 = Expansion
< 50 = Contraction
= 50 = No change
Scale: 0–100
⏱️ Why Delivery Times Are Inverted
Longer delivery times usually signal high demand or supply bottlenecks, so this component is inverted to contribute positively when activity is strong.
📊 Market Impact History
Surprises in PMI data frequently move IDR pairs and Indonesian equities.
Strong reading → risk-on flows
Weak reading → more cautious positioning
📍 Levels to Watch
- 50.0: Key expansion/contraction line
- 52–54 zone: Solid growth momentum
- Below 50: Warning sign for slowdown
⚠️ Quick Risk Reminder
PMI is a short-term sentiment indicator – it doesn’t always dictate longer-term price action. External shocks (supply chain issues, export demand) can skew the number.
Best used alongside inflation prints, BI rate decisions, and trade balance data.
💡 For macro traders: PMI often gives an early heads-up before the market fully prices in shifts in Indonesian growth momentum.
