RRI.CO.ID, Jakarta - The performance of Indonesia’s manufacturing industry at the start of 2026 remained resilient and stayed on an expansionary path.

The Industrial Confidence Index (IKI) in February 2026 stood at 54.02, down slightly by 0.10 points from January but up 0.87 points compared to February 2025. This marks the second-highest level since the index was launched in November 2022.

The survey of 23 manufacturing subsectors showed that 19 were in the expansion zone, while four contracted. The subsectors in expansion contributed 92.9 percent to the non-oil and gas manufacturing industry’s Gross Domestic Product (GDP).

“The two subsectors with the highest IKI values are the Printing and Reproduction of Recorded Media Industry and the Other Transportation Equipment Industry,” said Industry Ministry spokesperson Febri Hendri Antoni Arief in Jakarta on Thursday, February 26, 2026, as quoted on the ministry's official website.

He explained that both subsectors expanded due to rising demand from the food, beverage, textile and textile products, and footwear industries, with printing serving as a supporting sector. Motorcycle sales in January 2026 reached 577,763 units, an increase of 3.11 percent year-on-year.

Referring to data from the Central Bureau of Statistics (BPS), the ministry observed higher household consumption of clothing, footwear, and related services in February 2026. Consumption growth in this sector was recorded at 2.73 percent in 2024 and rose to 4.52 percent in 2025.

However, the domestic market IKI in 2025 showed that the apparel industry oriented toward the domestic market contracted. “There are strong indications that imported products are mostly meeting the increase in demand,” Febri said.

The ministry stated that the rise in domestic consumption should be utilized to strengthen the national manufacturing structure and improve the competitiveness of local products. The subsectors that contracted included wood and wood products, non-metallic minerals, computers and electronics, and machine repair.

Directorate of Chemical, Pharmaceutical, and Textile Industries Secretary Sri Bimo Pratomo said the non-metallic minerals industry contracted in orders and inventories due to weaker domestic demand from government procurement. “This month is still the beginning of the fiscal year and Ramadan, so many infrastructure projects have not yet started. Demand for building materials will likely pick up after Eid,” he said.

In the wood and wood products industry, contraction in production was triggered by global uncertainty and concerns among industry players about the impact of global trade agreements.

Agricultural Equipment and Machinery Industry Director Solehan said the computer, electronics, and optical industry experienced a decline in foreign orders, leading to contraction in February’s IKI. He added that semiconductor-based electronic components are currently in short supply.

Market-oriented IKI, both export and domestic, remained in the expansion zone despite slight slowdowns. Export-oriented IKI in February 2026 stood at 54.61, down 0.01 points from January, while domestic-oriented IKI stood at 53.12, down 0.13 points from January.

Overall, business conditions in February 2026 were considered positive. A total of 77.6 percent of respondents reported improved or stable business activity. Business optimism rose to 73.5 percent, while pessimism fell to 3.9 percent.

All IKI variables including orders, production, and inventories, remained in the expansion zone. Production recorded the highest expansion since January 2025 and has stayed in expansion for two consecutive months. ***