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Indonesia manufacturing expands in Sept, export orders at 4-year high: Markit

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A worker stitches a pair of jeans at a small factory at Cakung industrial village in Jakarta, Indonesia, May 5, 2015.

[JAKARTA] Indonesia's manufacturing expanded for the second consecutive month in September as new export orders and production inched up, according to data from the Nikkei Indonesia Manufacturing Purchasing Managers' Index, compiled by IHS Markit.

New export orders posted the strongest growth rate in almost four years in September, with companies noting Europe as being a key source of new work.

Costs rose for manufacturers as they paid high prices for a wide range of raw materials, mainly due to unfavourable exchange rates.

Both employment and buying levels increased in September, amid reports of greater output requirements.

Commenting on the survey, Pollyanna De Lima, economist at Markit, said: "The overall situation in manufacturing looks encouraging and although the observed growth in the sector remains on a relatively weak footing, the latest decision by Bank Indonesia to slash rates will likely boost the economy as we move into the coming quarter."