Indonesia Builds 633 New Factories in Q1 2026, Boosting Manufacturing Sector

Indonesia's manufacturing sector is demonstrating remarkable resilience and robust growth, as evidenced by the Ministry of Industry's report of 633 new factories established in the first quarter of 2026. Ministry spokesperson Febri Hendri Antoni Arief hailed this achievement as a testament to the sector's strength, highlighting its increasing contribution to the national economy, job creation, and investment.

This surge in industrial development represents a significant investment of Rp 418.62 trillion and is projected to create 219,684 new jobs. The subsectors leading this expansion include tobacco processing, beverages, and food, followed closely by chemicals. Notably, the basic metal industry accounts for the largest share of investment, while the leather, footwear, and chemical industries are expected to generate the most employment opportunities.

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Its contribution continues to increase, employment absorption grows, investment is increasingly growing, and it remains the main pillar of the national economy. This is proof that Indonesia's industrial structure is becoming more robust

Ministry officials express strong optimism about the future prospects of Indonesian manufacturing, attributing this confidence to both domestic demand and export potential. The government continues to prioritize investment in key sectors such as food and beverage, chemicals, pharmaceuticals, automotive, electronics, textiles, and downstream natural resource processing. This strategic focus aims to further solidify Indonesia's industrial base and enhance its global competitiveness.

Febri emphasized that Indonesia's manufacturing sector is proving its mettle amidst global supply chain disruptions, energy price volatility, and geopolitical tensions. With national industrial growth exceeding 5 percent, he asserted that Indonesia's industrial resilience and competitiveness are continuously improving. The government's ongoing implementation of industrial downstreaming policies, import substitution, strengthening domestic component levels, embracing Industry 4.0, and expanding non-traditional export markets are expected to fuel continued industrial expansion and economic prosperity.

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This shows very strong resilience and the competitiveness of Indonesian industry continues to increase