TOP! Indonesian Manufacturing Delivers Good News as May ICI Rises Amid Unexpected Factor

Jakarta, CNBC Indonesia - The Ministry of Industry (Kemenperin) recorded the Industrial Confidence Index (ICI) at 53.56 for May 2026, remaining in expansionary territory as it is above the 50 threshold. ‘This figure rose by 1.81 points compared to April 2026’s ICI of 51.75, and also increased by 1.45 points from May 2025’s 52.11,’ said Kemenperin spokesperson Febri Hendri Antoni Arief during the May 2026 ICI press conference, broadcast on Kemenperin’s YouTube channel on Tuesday (26/5/2026). ‘Of the 23 industrial subsectors analysed, 20 expanded and three contracted,’ he added. He explained that the expanding subsectors contributed 57.8% to the non-oil and gas manufacturing GDP in the first quarter of 2026. ‘The two subsectors with the highest ICI values were ready-made clothing (KBLI 14) and paper and paper products (KBLI 17),’ he stated. ‘The three contracting subsectors were leather, leather products and footwear (KBLI 15), other manufacturing (KBLI 32), and machinery and equipment repair (KBLI 33),’ he added. Febri noted that among the components of the ICI, the new orders or demand variable accelerated. ‘The new orders ICI variable accelerated by 2.04 points to reach 53.47,’ he said. ‘Production also accelerated by 3.86 points to 55.20,’ he added. ‘Conversely, the product inventory ICI variable decelerated by 1.80 points to 51.33,’ he said. It is worth noting that Indonesia’s textile and garment industry (TPT) frequently faces scrutiny due to the influx of imported clothing into the domestic market, both legal and illegal.