Indonesia’s S&P Global Manufacturing PMI edged up to 50.0 in May 2026 from April’s ten-month low of 49.1, signaling broadly stable factory conditions. New orders rose for a second month, with growth at its fastest since February. Yet export orders fell for a third month and at the steepest pace since August 2021, as Middle East conflict disruptions continued to weigh on trade. Output shrank again, though less sharply than in April, while raw material shortages forced firms to cut purchases. Backlogs of work increased for the first time since February, underscoring supply constraints, while employment slipped for a third month, albeit marginally. On prices, input cost inflation accelerated to its second-highest on record, driven by surging raw material prices, prompting the strongest selling price hikes since October 2013. Supplier performance deteriorated further amid delivery delays. Finally, business confidence improved slightly, with optimism still muted overall.