Antara News·Indonesia·Friday, October 30, 2026 at 11:49 AM UTC

Indonesia targets 85 percent industrial capacity utilization

Translate

Ahmad Muzdaffar Fauzan, Yashinta Difa

Even if there is global economic volatility or significant disruptions internationally, our industrial resilience remains quite strong..

Jakarta (ANTARA) - Industry Minister Muhammad Sarmuji has set a target of raising industrial capacity utilization to 80–85 percent from the current 66.13 percent to further increase manufacturing's contribution to the national economy.

Speaking at the 2026 National Leadership Meeting of the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta on Friday, Sarmuji said higher capacity utilization would provide an opportunity to expand domestic industry, dismissing concerns about deindustrialization.

He said the non-oil and gas manufacturing industry sector grew by 5.32 percent in the second quarter of 2026, exceeding national economic growth of 5.29 percent.

This followed the sector's 5.3 percent growth in 2025, which also outpaced the national economy's expansion of 5.11 percent.

"The economy is growing, and this marks the first time in 12 years that the industrial sector has outperformed the national economy," Sarmuji said, noting that manufacturing growth had exceeded overall economic growth since late 2025.

The manufacturing sector's performance is also reflected in investment realization, which accounted for 38.98 percent of total national investment.

Meanwhile, the sector's exports reached US$159.55 billion as of August 2026, representing 82.40 percent of Indonesia's total exports.

Other indicators also point to continued expansion. The Industrial Confidence Index (IKI) stood at 53.77 in October 2026, while Indonesia's manufacturing Purchasing Managers' Index (PMI) reached 52.1 in September 2026.

Sarmuji highlighted that industrial growth was supported by Indonesia's large domestic market, which has a population of 287.2 million.

Household consumption in 2025 was projected to reach Rp12,834.8 trillion (approximately US$713.04 billion), with 78 percent of domestic manufacturing output absorbed by the domestic market.

"Even if there is global economic volatility or significant disruptions internationally, our industrial resilience remains quite strong, supported by the immense potential of the domestic market," he concluded.

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.