Antara News·Indonesia·Wednesday, September 23, 2026 at 09:51 AM

Indonesia's labor-intensive industries rebound in Q2 2026: Minister

Translate

Ahmad Muzdaffar Fauzan, Yashinta Difa

While many countries are losing their industrial sectors, Indonesia is rebuilding its own..

Jakarta (ANTARA) - Indonesia's labor-intensive industries are showing signs of a solid recovery, with key manufacturing sub-sectors recording significant growth in the second quarter of 2026, Industry Minister Agus Gumiwang Kartasasmita said.

Speaking at the ANTARA Business Forum 2026 in Jakarta on Wednesday, the minister said that 14 of 15 industrial sub-sectors recorded positive growth, led primarily by labor-intensive segments.

The furniture sub-sector recorded the highest growth at 11.8 percent, followed by footwear and leather at 11.3 percent, food and beverages at 6.5 percent, and textiles and apparel at 6.4 percent.

"These are labor-intensive industries that, about two years ago, were widely reported to be carrying out layoffs. Today, based on our data, these sectors are actually rebounding," Agus said.

He stressed that growth in labor-intensive industries has a multiplier effect on job creation, noting that every percentage point of growth in these sectors absorbs far more workers than growth in capital-intensive industries.

However, some sub-sectors continue to face headwinds. The rubber, rubber products and plastics sub-sector contracted by 7 percent, while basic metals, paper, and tobacco processing recorded relatively sluggish growth.

Citing World Bank data, Agus noted that Indonesia's manufacturing value added reached US$275.61 billion in 2025, ranking 12th globally and first in Southeast Asia—roughly double Thailand's US$137 billion.

The manufacturing sector's contribution to national gross domestic product (GDP) has also risen steadily over four consecutive years, increasing from 18.34 percent to 19.07 percent in 2025.

"While many countries are losing their industrial sectors, Indonesia is rebuilding its own. This is a major asset," Agus said.

The minister added that the national industrial landscape is supported by a strong domestic market of 287.2 million people, with annual household consumption reaching Rp12,834.8 trillion (approximately US$721.05 billion), accounting for 78.39 percent of national manufactured output.

View the original on Antara News →

KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.