Indonesia’s manufacturing performance rebounded strongly and maintained its expansive trajectory for the 24th consecutive month and topping the highest level since Sep 2022. The latest data in Aug 2023, Indonesia's Manufacturing PMI Index recorded an improvement from 53.3 points to 53.9 points, the highest level among ASEAN countries, and only 4.7 points lower than India which recorded the highest level of PMI Manufacturing Index among Asian countries at 58.6 points in Aug. 

Domestically, manufacturing sector optimism was also reflected by Bank Indonesia’s (BI) business activity survey in 3Q23. Based on BI's survey, manufacturing sector activity in 3Q23 is expected to improve, rising from 2.2% of weighted net balance (Saldo Bersih Tertimbang, SBT) to 2.7% SBT on the back of improvement in investment expectations.