Indonesia's Manufacturing Sector Continues Expansion Despite Slight Slowdown in April IKI
JAKARTA, KOMPAS.com - The Ministry of Industry (Kemenperin) records that Indonesia’s manufacturing industry performance is still in the expansion zone in April 2026, despite experiencing a slight slowdown amid global geopolitical pressures and moderated business optimism.
Kemenperin’s spokesperson, Febri Hendri Antoni Arief, stated that the Industrial Confidence Index (IKI) for April 2026 was recorded at 51.75, down 0.11 points from March 2026’s 51.86.
“In April 2026, the processing industry or manufacturing sector’s IKI is valued at 51.75,” said Febri in the April IKI release in Jakarta on Wednesday (29/4/2026).
Of the 23 analysed processing industry subsectors, 16 subsectors remain in the expansion zone and contribute 78.9 percent to the non-oil processing industry’s GDP in Q4 2025.
The two subsectors with the highest performance come from tobacco processing and the paper and paper products industry.
Meanwhile, seven subsectors are experiencing contraction, including the beverage industry (KBLI 11), textile industry (KBLI 13), and wood industry, wood products and cork except furniture, as well as bamboo and rattan weaving (KBLI 16).
Febri said that geopolitical pressures, including logistics and energy disruptions due to tensions in the Strait of Hormuz, are still having a limited impact on certain subsectors, particularly petrochemicals and their derivatives.
On the demand side, the new orders variable fell 0.77 points to 51.43, while the production variable dropped 0.21 points to 51.34.
Conversely, product inventory rose 1.66 points to 53.13.
Meanwhile, domestically oriented industries strengthened to 50.90 from 50.44 in March.
“The impact of the energy crisis due to geopolitical turmoil does affect certain subsectors,” Febri stated.
Although the majority of business actors still report improving or stable business conditions, optimism for the next six months has declined to 70.1 percent, slowing 1.7 percent from the previous month.