Ministry of Industry Records Industrial Confidence Index at 52.30 in August
The Ministry of Industry (Kemenperin) recorded that the Industrial Confidence Index (IKI) for August 2026 remained in the expansion zone with a value of 52.30.
Ministry of Industry Spokesperson Febri Hendri Antoni Arif stated that the August 2026 IKI achievement, remaining above the 50 level, demonstrates industrial optimism regarding national economic developments.
“The IKI value for August 20lag 2026 is 52.30, which is still above 50, indicating continued expansion. Although it slowed by 0.8 points compared to July 2026, where the IKI was 53.1,” Febri said in Jakarta on Monday.
Out of the 23 manufacturing sub-sectors analysed, 22 sub-sectors recorded expansion while one sub-sector experienced contraction. The expanding sub-sectors contributed 98.6 per cent to the total Gross Domestic Product (GDP) of the manufacturing industry.
“This means that the expanding sectors are the large-scale industries. The industries with the highest IKI in August 2026 were the beverage industry (KBLI 11) and the chemical and chemical products industry (KBLI 20),” said Febri.
Meanwhile, the sub-sector experiencing contraction was the leather, leather goods, and footwear industry (KBLI 15).
Febri explained that based on the components of the IKI—consisting of new orders, production, and product inventory—there were varying dynamics in August 2026. The new orders variable slowed by 0.67 points to 53.13, whereas the production variable actually increased by 0.55 points to 55.10. However, the product inventory variable decreased by 3.16 points, reaching a contraction level of 46.02.
In terms of market orientation, both the export-oriented IKI and domestic IKI remained in expansion despite slowing down. The domestic IKI fell to 51.13, and the export-oriented IKI also declined to 53.09.
Febri added that the resilience of Indonesia’s manufacturing industry was also reflected in the growth of the non-oil and gas processing industry in the second quarter of 2026, which reached 5.32 per cent, higher than the national economic growth of 5.29 per cent.
“This proves that the manufacturing industry remains a pillar and a driver of national economic growth,” said Febri. He noted that the 5.32 per cent growth in the manufacturing industry in Q2 2026 was the highest in the last 14 years and contributed 0.9 per cent to national economic growth.
Furthermore, Febri assessed that the resilience of Indonesia’s manufacturing industry is evident in the sector’s ability to recover faster after the COVID-119 pandemic compared to several other ASEAN countries. He explained that a primary factor in this rapid recovery was strong domestic demand, with approximately 80 per cent of manufacturing demand originating from the domestic market, while 20 per cent came from exports.
Additionally, Febri stated that in August 2026, industries were still closely monitoring both domestic and export market developments. Despite a slight decrease in demand, industrial players maintained production activities as they foresee prospects for both the national and global economies to continue improving.
“Industries continue to produce their goods because they believe that both the Indonesian and global economies will continue to improve,” he said.
Regarding business activities, 78.6 per cent of respondents stated that their business conditions were improving or stable. Specifically, 34.2 per cent of business actors reported improving conditions, while 44.4 per cent reported stable conditions.
Furthermore, the level of optimism among business actors regarding business conditions for the next six months remains maintained. 66.6 per cent of business actors expressed optimism, 27.4 per cent expressed stability, and only 6 per cent expressed pessimism.