Indonesia's manufacturing sector slipped into contraction in April as cost pressures intensified, according to data released Monday by S&P Global.

The S&P Global Indonesia Manufacturing Purchasing Managers' Index fell to 49.1 in April from 50.1 in March, dropping below the 50 mark for the first time in nine months.

Output declined for a second straight month, with the pace of contraction the fastest since May 2025, amid rising raw material prices, supply shortages, and weaker purchasing power.

New orders edged up slightly, largely driven by advance buying to guard against further price increases and supply disruption, while new export orders fell.

Input cost inflation rose to a four-year high, prompting firms to raise selling prices at the fastest pace since October 2013.

Purchasing activity and employment both declined, while delivery times lengthened for a seventh consecutive month due to material shortages and delays linked to the Middle East conflict.

Business confidence weakened to a five-month low, though firms remained optimistic about output over the next 12 months.