Indonesia Sees 633 New Factory Plans in Q1 2026, Ministry Says

The Indonesian Ministry of Industry has announced a significant surge in new factory plans, with 633 projects initiated in the first quarter of 2026. This robust activity underscores the continued strength and resilience of our nation's manufacturing sector, a vital pillar of the Indonesian economy.

These ambitious plans represent a substantial investment of Rp418.62 trillion, roughly US$25 billion, and are projected to generate an impressive 219,684 new jobs. This influx of investment and employment opportunities is crucial for our national development goals, boosting economic contribution and fostering growth across various regions.

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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.

While the tobacco processing, beverage, and food industries are leading in terms of the sheer number of new facilities, the basic metals sector stands out for its massive investment value. This diverse industrial expansion highlights the breadth of opportunities within Indonesia's manufacturing landscape. Furthermore, the footwear sector shows immense potential for job creation, signaling a positive outlook for employment.

Despite global headwinds such as supply chain disruptions and geopolitical tensions, Indonesia's industrial sector has demonstrated remarkable resilience, maintaining growth above 5 percent. This performance is a testament to effective government policies, including those promoting downstreaming, import substitution, and the adoption of Industry 4.0 technologies. As Tempo, we are proud to report on this positive economic momentum, which signals a strengthening industrial structure and a bright future for Indonesian manufacturing on both domestic and international stages.

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This shows strong resilience and that Indonesia’s industrial competitiveness continues to improve.