Industry Minister Admits Indonesia's Manufacturing Sector is Under Pressure, But Only Temporarily

Pressure on the manufacturing sector is acknowledged to be occurring in line with global dynamics that affect markets and supply chains. However, the government believes this situation is temporary and will not last long.

Industry Minister Agus Gumiwang Kartasasmita emphasised that Indonesia’s manufacturing industry has strong resilience in facing various crises. Past experiences form the basis of this optimism. According to him, the current pressures are a phenomenon also felt by many countries. External factors are one of the main causes.

“We are now in a condition that perhaps needs attention. And the condition being faced is not only by Indonesia,” said Agus at the Ministry of Finance office on Tuesday (5/5/2026).

He exemplified how the manufacturing sector was able to survive during the Covid-19 pandemic, even though at that time the pressure on markets and production was very significant. This resilience shows that the national industry structure is strong enough to face global economic turbulence.

“I have said many times that we have experienced crises with extraordinary magnitude, the last being Covid, where manufacturing friends could demonstrate their resilience,” he said.

The current pressures come from various sides, including weakening demand and challenges in supplying raw materials. This condition is seen as a normal cycle in the global economy.

Nevertheless, the government continues to take various anticipatory steps to maintain industry stability. Cross-sector coordination is being strengthened. He also emphasised that the Ministry of Industry focuses on the real aspects of the industry sector, while other issues such as exchange rates fall under the domain of relevant ministries.

“That there is pressure on the market, pressure on raw materials, is indeed faced by all countries, all parties,” he explained.

In this situation, Agus asked industry players to remain optimistic and maintain production performance. He assessed that the current conditions are temporary and will improve along with global economic recovery.

“I am confident this is temporary in nature,” he said.

With this conviction, the government hopes the manufacturing sector will remain a main pillar in sustaining national economic growth in the future.

“I still believe in the resilience of the manufacturing sector,” he stated.