Indonesia’s manufacturing investment continues to grow sustainably, with 1,236 industrial companies ready to begin production for the first time in 2026 (15/01), according to the Ministry of Industry.

The Ministry addressed doubts about the sustainability of manufacturing investment, stating that such views are not fully aligned with actual data.

The 1,236 companies completed construction in 2025 and represent new industrial capacity that will start operations in 2026.

The Ministry emphasized that this new production capacity is concrete evidence that investment in manufacturing is being realized in the real sector.

“This shows that investment in manufacturing is active and sustainable,” said Febri Hendri Antoni Arief, spokesperson for the Ministry of Industry, in Jakarta on Wednesday (04/02).

The new industrial capacity is expected to create 218,000 jobs. These companies consist of relocations from abroad, expansions, and new investments, which will contribute to Indonesia’s GDP and strengthen the existing industrial value-added output.

Febri also noted that claims of stagnant manufacturing investment contradict official government data.

Recent import-export statistics from Statistics Indonesia (BPS) show that imports of capital goods rose by 34.66 percent in 2025 compared to 2024.

“These capital goods, mainly machinery and mechanical equipment, are directly linked to new investment activities and industrial expansion,” Febri added.

The Ministry highlighted that indicators based on real activity, such as the number of companies starting production, investment realization, and capital goods imports, offer a more accurate picture of manufacturing investment than surveys alone.

Looking ahead, the Ministry will continue to strengthen the industrial investment climate through downstreaming policies, industrial zone development, Industry 4.0 transformation, and support for domestic and export markets.

“With these policies, we are optimistic that manufacturing investment will keep growing, create jobs, and contribute significantly to national economic growth,” Febri concluded.

PHOTO: MINISTRY OF INDUSTRY

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