The S&P Global Indonesia Manufacturing PMI rose to 49.1 in July 2025 from 46.9 in June, marking the highest print since March. Although it was the fourth straight monthly fall in factory activity, the latest reading was the mildest drop in the sequence. Output shrank the least in four months while a drop in new orders eased, supported in part by the start of new projects. Job shedding was marginal, and backlogs of work fell for the fourth month. Buying levels also dropped as production needs eased. Foreign demand slipped back into contraction for the third time in four months after briefly stabilizing in June. Supply chains were affected by shipping delays tied to the Iran-Israel conflict, lengthening input delivery times. Input cost inflation rose to a four-month high due to pricier raw materials and currency volatility, prompting firms to raise selling prices modestly. Finally, sentiment fell to a record low, on concerns over U.S. tariffs and weakening client purchasing power.