Speaking at the ANTARA Business Forum (ABF) 2026 in Jakarta on\nWednesday, he mentioned that the pressure on the industry is reflected\nin Indonesia\u2019s Manufacturing Purchasing Managers\u2019 Index (PMI), which\nstood at 49.8 in August 2026, slightly below the 50-point expansion\nthreshold.<\/p>\n
However, he emphasized the importance of considering the situation\nalongside the Ministry of Industry\u2019s Industrial Confidence Index (IKI).\nThe index reached 52.3 in August, remaining in the expansion zone and\nabove 50 throughout the first eight months of 2026.<\/p>\n
According to Kartasasmita, the gap between the two indicators shows\nthat industry players remain confident about business prospects while\nalso facing real challenges in the field.<\/p>\n
He noted that the PMI captures fluctuations more quickly, as it\nmeasures companies\u2019 purchasing and order conditions for the current\nmonth, while the IKI covers a broader range of companies and places\ngreater emphasis on new orders.<\/p>\n
The minister then identified at least four major pressures currently\nweighing on the national industry, namely a flood of imports,\ngeopolitical tensions, rising oil prices, and consumer purchasing\npower.<\/p>\n
He explained the surge in imports is occurring amidst global\nproduction overcapacity, particularly in the steel, textile, ceramic,\nplastic, and electronics sectors.<\/p>\n
Kartasasmita acknowledged that this situation places further strain\non domestic industries, as many imported products enter the market at\nvery low prices. Price competition has become increasingly difficult for\ndomestic producers, who must shoulder production and operational\ncosts.<\/p>\n
The next source of pressure is geopolitical in nature, specifically\nthe conflict between the United States and Iran and disruptions in the\nStrait of Hormuz, which affect global energy supply routes.<\/p>\n
Rising oil prices also pose a challenge, as they directly affect\ncosts related to fuel, logistics, and petrochemical raw materials such\nas plastics, synthetic rubber, and polyester fibers, he continued.<\/p>\n
Kartasasmita said the four sources of pressure are interconnected.\nRising energy costs are driving up production expenses, while cheap\nimports are putting pressure on product prices and weak purchasing power\nis weighing on demand.<\/p>\n
\u201cWe have conducted an assessment and found that the challenge facing\nour industry is not a lack of production capacity, but ensuring that the\ngoods we produce are absorbed by the domestic market,\u201d he pointed\nout.<\/p>\n
To address these challenges, the government is implementing the New\nNational Industrialization Strategy (SBIN), adopted during the Ministry\nof Industry\u2019s working meeting on October 27, 2025.<\/p>\n
The SBIN rests on four pillars: natural resource-based\nindustrialization, industrial ecosystem development, technological\nmastery, and sustainability principles.<\/p>\n
Natural resource-based industrialization aims to increase the\nvalue-added of commodities such as nickel, palm oil, coal, and other key\ncommodities.<\/p>\n
Meanwhile, industrial ecosystem development involves integrating\nupstream and downstream sectors, supported by a competent workforce and\nadequate infrastructure.<\/p>\n
On the technology side, the government is promoting modernization and\ninnovation to boost productivity and competitiveness. Sustainability\nalso serves as a foundation through the development of green industries\nand the circular economy.<\/p>\n
\u201cThe SBIN is a national strategy to ensure that Indonesia\u2019s industry\nnot only survives but also grows and achieves industrial sovereignty by\nbuilding a resilient, competitive, and sustainable sector,\u201d Kartasasmita\nsaid.<\/p>\n
He added that industrial growth of 5.32 percent indicates the\nindustrialization policy is moving in the desired direction.<\/p>\n
However, amid growing global pressures, the implementation of the\nSBIN needs to be strengthened through three key measures: protecting the\ndomestic market, reducing costs, and improving productivity.<\/p>\n
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Translator: Ahmad Muzadaffar, Resinta Sulistiyandari<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/minister-discusses-industry-challenges-solutions-at-abf-2026-1790164305", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }