Investment in National Manufacturing Industry Remains to Grow: Govt

  • 04 Feb 2026 14:55 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - The Indonesian Ministry of Industry spokesperson, Febri Hendri Antoni Arief, emphasized that investment in the national manufacturing industry continues to grow and is sustainable. Febri believes this is reflected in the realization of new production capacity and other real investment indicators.

The government noted that 1,236 industrial companies completed the physical construction phase last year. Thousands of these new factories are scheduled to begin commercial operations in 2026.

“The influx of investment into the industrial sector cannot be assessed based on a single sentiment indicator. The fact that more than 1,000 industrial companies are ready to operate in 2026 shows that manufacturing investment is ongoing and sustainable,” said Febri in Jakarta on Wednesday, February 4, 2026.

Febri explained that these new industries are coming from foreign relocations and domestic investment expansion. These factories are projected to directly employ 218,000 new workers.

This investment growth is expected to increase the Gross Domestic Product (GDP) in the national non-oil and gas processing sector. The successful realization of these projects demonstrates that investor confidence in Indonesia's business climate remains very high.

Official government data shows a sharp increase in capital goods imports, reaching 34.66 percent. The surge in machinery and mechanical equipment imports reflects the modernization of production capacity across various industrial sectors.

“The significant increase in capital goods, machinery, and mechanical equipment imports is a strong indicator that manufacturing investment is growing rapidly, especially throughout 2025,” said Febri.

The ministry considers real activity indicators to provide a much more comprehensive overview than survey results. Febri said the number of companies that have started production is clear evidence that foreign and domestic capital continue to flow.

He added that the national industrial structure will strengthen with the entry of large-scale investment into the processing sector. The government is optimistic that the manufacturing sector's growth momentum will remain consistently above five percent.

Downstreaming policies and the development of industrial estates, he continued, are the main drivers in strengthening the domestic investment climate. The Industry 4.0 transformation is also being implemented to enhance local product efficiency and competitiveness in the global market.

The ministry continues to support business actors to ensure the initial production process proceeds without obstacles. Strengthening the domestic market remains a priority for sustaining new industrial companies.

This strategic step is taken to ensure that the investment has a real positive impact on community welfare. He believes that employing several hundred thousand new workers will help reduce unemployment rates in various industrial centers.

“With these various policies, we are optimistic that investment in the manufacturing industry will continue to grow. This growth is expected to create jobs and contribute significantly to national economic growth,” said Febri. (Gusti Panji/Lasti Martina)

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