April 25, 2026 | 06:00 pm
TEMPO.CO, Jakarta -The Ministry of Industry reported that 633 industrial companies planned to build new production facilities in the first quarter of 2026, reflecting continued activity in the country’s manufacturing sector.
Ministry spokesperson Febri Hendri Antoni Arief said the development points to sustained industrial performance, with increases in economic contribution, employment, and investment.
“Its contribution continues to increase, job absorption is growing, investments are rising, and it remains a key pillar of the national economy. This shows that Indonesia’s industrial structure is becoming stronger,” Febri said in a written statement on Friday, April 24, 2026.
The planned factory construction is valued at Rp418.62 trillion (around US$25 billion) and is expected to create approximately 219,684 jobs.
Food, Beverage, and Tobacco Lead by Number of Projects
By number of projects, the tobacco processing subsector led with 72 companies planning new facilities, followed by the beverage industry with 67 and the food industry with 60. Another 49 companies in the chemical and chemical materials subsector also reported plans to build new plants.
Basic Metals Dominate Investment Value
In terms of investment value, the basic metals industry accounted for the largest share, with Rp218.04 trillion from 24 companies. This was followed by the chemical and chemical materials industry at Rp81.22 trillion, and the non-metallic mineral products industry at Rp12.1 trillion.
Footwear Sector Leads Job Creation Potential
The leather, leather goods, and footwear subsector is expected to generate the most jobs, with plans to employ 37,350 workers. It is followed by the basic metals industry with 25,592 jobs and the chemical sector with 9,065.
Febri said the surge in planned factory construction reflects strong optimism among industry players regarding both domestic and export demand, and signals positive growth prospects for Indonesia’s manufacturing sector in 2026.
He added that the government continues to steer investment toward priority industries, including food and beverages, chemicals, pharmaceuticals, automotive, electronics, textiles, and downstream natural resource-based sectors.
Despite global challenges such as supply chain disruptions, volatile energy prices, and geopolitical tensions, Febri said Indonesia’s manufacturing sector has remained resilient, citing industrial growth of more than 5 percent.
“This shows strong resilience and that Indonesia’s industrial competitiveness continues to improve,” he said.
He expressed confidence that the sector will keep expanding, supported by policies on industrial downstreaming, import substitution, strengthening domestic content requirements (TKDN), Industry 4.0 transformation, and efforts to expand into non-traditional export markets.
Read: Bank Indonesia Prepares Measures to Safeguard Rupiah Stability
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