BPS Reports Indonesia's Manufacturing Sector Still Expanding in Q1/2026

Indonesia’s manufacturing sector remained in the expansion zone in the first quarter of 2026, according to a report from Statistics Indonesia (BPS). This national industrial activity is indicated by the Manufacturing Business Condition and Prospects Index (IKBM), which reached 51.37 on Tuesday (5/5/2026).

The data was presented to the public for the first time at a press conference in Jakarta. The IKBM achievement above the 50 threshold confirms that domestic production activities are still experiencing positive growth at the beginning of this year, as reported by Ekonomi.

“In Q1/2026, the IKBM was recorded at 51.37, indicating that the manufacturing industry sector is in an expansion phase,” stated BPS Chief Amalia Adininggar Widyasanti.

Analysis of the five components making up the index shows solid performance in almost all production lines. Four categories, including orders (52.69), production (51.78), raw material inventories (51.54), and employment (50.57), are all in the growth phase.

“In terms of components, almost all IKBM index formers indicate expansion conditions, except for the delivery time component which is experiencing contraction,” said Amalia.

BPS developed this instrument to provide a comprehensive picture of the national processing sector. The index is compiled through periodic surveys of large and medium-sized industrial companies, both inside and outside special economic zones nationwide.

“And the fifth is the amount of raw material inventory, measured by the amount of raw material inventory stored by companies,” Amalia concluded.

In the same report, Indonesia’s overall economic growth reached 5.61 per cent year-on-year (yoy) in Q1/2026. The processing industry sector remains the largest contributor to Gross Domestic Product (GDP) with a share of 19.07 per cent.

This achievement surpasses other major sectors such as trade, which contributes 13.28 per cent, agriculture at 12.67 per cent, construction at 9.81 per cent, and the mining sector recording 8.69 per cent.