TOKYO -- The Nikkei Indonesia Manufacturing Purchasing Managers' Index, or PMI, fell to 49.3 in February from 50.4 in January.
A reading above 50 indicates economic expansion, while one below 50 points toward contraction.
January's reading showed first improvement in four months, but operating conditions across Indonesia's manufacturing economy worsened in February as output and new orders fell, according to IHS Markit, which compiles the survey.
"A lack of domestic demand coupled with weakness in global markets meant that opportunities to capture new work were scarce," said Pollyanna De Lima, an economist at IHS Markit.
"Meanwhile, there was further despair on the employment front as staffing levels declined for the fifth straight month," the economist added.
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