RRI.CO.ID, Jakarta - Indonesia’s non-oil and gas manufacturing industry delivered another strong performance in the second quarter of 2026. While the national economy grew by 5.29% year-on-year, the manufacturing sector expanded by 5.32%, outperforming overall economic growth.

The achievement reflects the effectiveness of President Prabowo Subianto’s pro-industry policies, which position manufacturing as a key engine of economic growth. The Ministry of Industry has implemented this vision through the National Industrialization Grand Strategy (SBIN).

According to Statistics Indonesia (BPS), manufacturing contributed 18.50% of the country's Gross Domestic Product (GDP), the largest share among all economic sectors. It also became the biggest contributor to economic growth, accounting for 0.90 percentage points, surpassing every other sector.

Industry Minister Agus Gumiwang Kartasasmita said the results demonstrate that Indonesia’s industrialization strategy is on the right track. He noted that the government’s strong support for manufacturing has strengthened the sector’s competitiveness while reinforcing its role as a key driver of economic growth.

"President Prabowo has made it clear that industry must become the backbone of Indonesia’s economic growth. Through the National Industrialization Grand Strategy (SBIN), we are strengthening industrial capabilities, accelerating downstream industries, increasing value-added production, and creating more jobs. The results are now evident, with non-oil and gas manufacturing growing faster than the national economy," Agus said in Jakarta on Wednesday, August 5, 2026.

According to Agus, the sector’s success is reflected not only in higher output but also in stronger business activity. The Manufacturing Business Conditions and Outlook Index (IKBM) reached 52.31, remaining in expansion territory.

The positive momentum is also supported by Indonesia’s Manufacturing Purchasing Managers’ Index (PMI), which stood at 50.2 in July 2026, and the Industrial Confidence Index (IKI), which reached 53.10 in the same month. Both indicators signal continued expansion in manufacturing activity.

"These indicators show that manufacturers remain optimistic about business prospects. Production, investment, and demand for manufactured products continue to expand," Agus said.

Agus added that second-quarter manufacturing growth was driven by several strategic industries. The food and beverage industry grew 6.51%, supported by stronger domestic and export demand.

Meanwhile, the fabricated metal, computer, electronics, optical products, and electrical equipment industry recorded the highest growth at 8.04%, driven by rising global demand for electronic components, batteries, and electrical equipment. The chemical, pharmaceutical, and traditional medicine industry expanded 4.99%, supported by stronger domestic demand for chemicals and related products.