Industrial Confidence Index at 51.86 in March 2026, Industry Still Expanding but Slowing

JAKARTA, KOMPAS.com - The Ministry of Industry recorded the Industrial Confidence Index at 51.86 points in March 2026. This figure shows that the manufacturing sector is still in the expansion zone. The value is lower than February 2026’s 54.02. On an annual basis, the figure also declined from 52.98 in March 2025. Ministry spokesperson Febri Hendri Antoni stated that the IKI reflects the real conditions of the non-oil and gas processing industry. “As part of our responsibility for public accountability, we convey the IKI performance objectively. The IKI is also the voice of the industry,” Febri said at his office on Tuesday (31/3/2026). “The performance of the non-oil and gas processing industry in March 2026 is 51.86. This is still above 50, meaning the manufacturing industry remains in expansion, but it has slowed compared to the previous month,” he explained. Of the 23 subsectors, 16 are in the expansion zone. The remaining 7 subsectors are experiencing contraction. The growing subsectors contribute around 78.3 percent to the gross domestic product of the non-oil and gas processing industry. The highest performance was recorded in the printing and recording media reproduction industry as well as the motor vehicle industry. Several subsectors are experiencing contraction, including the beverage industry, tobacco processing, wood industry, chemicals, non-metallic mineral goods, and the computer and electrical equipment industry. “The IKI decline of 2.16 points compared to February is caused by a combination of factors, especially seasonal factors after Eid al-Fitr and Chinese New Year, so the industry slightly reduces its production,” said Febri. Several industries are also holding back production because stocks are still high. The distribution of goods to the market is not yet optimal. “Some industries are reducing their production because there is still a lot of stock in warehouses and it has not been distributed to the market, including due to vehicle logistics restrictions for about 16 days,” he said. Domestic demand also weakened in March. This condition further pressures industrial production.