Industry Ministry, Kadin eye stronger synergy to drive manufacturing

Jakarta (ANTARA) - Industry Minister Muhammad Sarmuji has called on government and business leaders to capitalize on positive momentum within the national industrial outlook to accelerate growth in the manufacturing sector.
Following a meeting with the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta on Monday, Sarmuji noted that this upward trend is reflected in a series of encouraging economic indicators.
Official data highlights a strong expansion phase for Indonesian manufacturing.
The Industrial Confidence Index reached 53.77 in October 2026, while the S&P Global Indonesia Manufacturing Purchasing Managers' Index (PMI) surged to 54.0 for the same period—marking the highest PMI level recorded in the country over the last 31 months.
Both indices comfortably cleared the critical 50-point threshold separating contraction from expansion.
"This demonstrates strong investor confidence in Indonesia. Now is the time to leverage this momentum to drive even greater industrial growth,” Sarmuji stated.
He stressed that Indonesia’s wealth of diverse natural resources and regional commodities provides a distinct competitive edge on the global stage.
Harnessing this potential, he argued, requires close collaboration between the government and the private sector.
A core pillar of this strategy involves elevating small and medium-sized industries (SMEs).
Sarmuji praised Kadin's dedication to integrating smaller enterprises into the broader national industrialization ecosystem, noting that a resilient, inclusive economy relies heavily on strengthening these grassroots businesses.
Given Kadin’s extensive business network—spanning major corporations to regional enterprises—Sarmuji confirmed that his ministry is prepared to deepen cooperation, specifically by enhancing SME competitiveness and tightening their integration with large-scale industrial operations.
Echoing the minister's optimistic outlook, Kadin Indonesia Chairman Anindya Bakrie underscored that the current expansion signals a strengthening industrial foundation.
He affirmed that Kadin remains fully aligned with the national industrialization agenda under the Indonesia Incorporated framework championed by President Prabowo Subianto.
He noted that industrialization extends beyond large-scale, high-tech endeavors like nickel downstream processing, pointing out that regional flagship commodities—such as sago, algae, and coconut—also hold vast potential for generating added value and helping regional SMEs scale up.
Anindya also lauded the ministry's ongoing link and match initiatives aligning industrial requirements with workforce capacity-building, stressing that public-private synergy must be continuously fostered nationwide.
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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Azis Kurmala
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