Operating conditions continued to improve in Indonesia’s manufacturing sector in January 2023, supported by higher levels of output and new orders (that both rose at their fastest in three months). Respondents in the survey stated that there were high levels of client requests that conversed into hard business wins at the start of 2023. Promotional activities also supported improving market demand.

 

However, a trend that has been ongoing for a long time, it are domestic orders that support the manufacturing sector. New export orders declined for the eight-straight month. And so, Indonesia’s manufacturing sector is highly dependent on domestic orders (fortunately Indonesia forms a huge market).

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