Industrial Confidence Index expands to 53.56 in May

The Ministry of Industry (Kemenperin) recorded the Industrial Confidence Index (IKI) at 53.56 in May 2026, a significant rise from April’s 51.75.

Ministry spokesperson Febri Hendri Antoni Arif said in Jakarta on Tuesday that the increase signals positive optimism among national manufacturing industry players despite currency pressures and global dynamics.

He noted that a key factor driving the IKI rise was President Prabowo Subianto’s decision not to increase subsidized fuel prices (BBM), which helped contain inflation and support consumer purchasing power, boosting domestic demand for manufactured goods.

Febri added that the improved industrial optimism is reflected in all IKI components expanding. Production rose by 3.86 points to 55.20, the highest since January 2025, while orders increased to 53.47 and inventory reached 51.33.

Of the 23 manufacturing subsectors analysed, 20 expanded, contributing 97.8% to the non-oil and gas manufacturing industry’s GDP in Q1 2026.