Indonesia is set to strengthen its manufacturing base in 2026 as 1,236 new industrial companies begin production nationwide. According to Industry Minister Agus Gumiwang Kartasasmita, the firms—whose construction started in 2025—will operate across various industrial sectors and are expected to create approximately 218,892 new jobs. The additional production capacity is viewed as a key factor in sustaining industrial momentum, reinforcing the manufacturing structure, and supporting inclusive economic growth.
The manufacturing sector recorded growth of over 5% last year and remains a major contributor to the national economy. Total non-oil-and-gas manufacturing investment reached IDR 551.88 trillion, with IDR 444.25 trillion allocated to machinery and production facilities. Looking ahead, the government is targeting 5.51% growth in non-oil-and-gas manufacturing GDP in 2026, driven mainly by base metals, food and beverage, and pharmaceutical industries. The government is also prioritizing stronger domestic demand while expanding global market access, with manufacturing exports targeted to account for nearly 75% of total exports. To support these goals, manufacturing investment is projected to reach IDR 852.90 trillion in 2026.
