The IHS Markit Indonesia Manufacturing PMI rose to 39.1 in June 2020 from 28.6 a month earlier. This was the fourth straight month of contraction in factory activity but at a softer pace, as the COVID-19 containment measures were gradually eased. However, the latest reading was still the third-lowest since the survey started over nine years ago. The drops in both output and new orders were smaller than in May but still substantial.

Firms also reduced employment and purchasing activity at marked rates. Supply chains remained under pressure, with longer delivery times reported for a fifth straight month. On the price front, input costs rose the most in over 1-1/2 years, amid greater raw material prices and a weaker exchange rate. Output charges were raised modestly, and at a far softer rate than the rise in costs. Lastly, business confidence jumped to the highest since January.