Indonesia's Ministry of Industry has announced its strategic industrial priorities for 2026, focusing on downstreaming, expanding exports, and accelerating green transformation.

The announcement was delivered by Minister of Industry Agus Gumiwang Kartasasmita during a working meeting with Commission VII of the House of Representatives (DPR RI) on Wednesday, September 3, 2025, in Jakarta.

The non-oil and gas processing industry is projected to grow by 6.52% next year, contributing 18.66% to the national GDP.

The sector is expected to drive 74.85% of national exports and absorb 14.68% of the national labor force.

Investment distribution outside of Java is also set to increase, reaching 33.25%, as part of efforts to decentralize economic growth and reduce development inequality.

“These targets reflect the government’s determination to make industry the main driver of the national economy,” said Minister Agus. “Industrial growth is aimed not only at strengthening economic structure but also delivering direct benefits to society through job creation, increased exports, and enhanced competitiveness.”

Ministry Prioritizes SME Strengthening and Local Workforce Development

To support these ambitious goals, the Ministry of Industry is preparing a series of priority programs.

These include the strengthening of small and medium industries (IKM), the creation of new entrepreneurs, and the acceleration of natural resource downstreaming.

Technological restructuring, industrial vocational education, and competency development are also emphasized to build a stronger and more adaptive industrial workforce.

The ministry further highlighted the development of halal industry sectors, increased use of domestic components (TKDN), and the rapid development of industrial zones across the country.

“Our manufacturing sector has shown high resilience,” said the Minister. “Despite facing various challenges, the resilience of the industry is proven, and this forms the basis of our optimism for accelerated growth.”

Green Industry Transformation to Cut Emissions by 6.79 Million Tons CO₂ eq

One of the key pillars of the 2026 strategy is the transformation toward a green industry model.

The Ministry targets a reduction of 6.79 million tons of CO₂ equivalent in greenhouse gas emissions by applying energy efficiency measures, clean technologies, and sustainable production principles.

“Green industry implementation is one of our main focuses,” said the Minister, citing energy efficiency and clean technology as critical components of the transformation.

Prabowo’s ASTA CITA Framework Guides Inclusive, Competitive Growth

All programs and policy directions are designed to align with the national development agenda and President Prabowo Subianto’s ASTA CITA vision.

According to the Minister, this alignment ensures that every industrial policy delivers measurable added value, strengthens the economic structure, and fosters equitable development across Indonesia.

“In line with President Prabowo Subianto’s ASTA CITA, the Ministry of Industry will ensure that every policy generates real added value, strengthens economic structure, and promotes balanced growth throughout Indonesia,” said Agus.

He also stated that 2026 will be a pivotal year for promoting Indonesian industrial products, expanding global market access, and increasing investment flows.

“All programs have been prepared in line with the national development agenda and ASTA CITA. Support from the House of Representatives is crucial to ensure the 2026 industrial development strategy is implemented optimally and becomes a solid stepping stone toward the 2045 Golden Indonesia vision,” the Minister added.

PHOTO: KEMENPERIN

This article was created with AI assistance.