Industrial Confidence Index for August 2026 Stands at 52.30: Govt

RRI.CO.ID, Jakarta - The Indonesian Ministry of Industry reported that the Industrial Confidence Index (ICI) for August 2026 stood at 52.30, indicating that Indonesia’s manufacturing sector remained in an expansionary phase.

The August reading was 0.80 points lower than July’s 53.10. Ministry spokesperson Febri Hendri Antoni Arief said industry players were still awaiting changes in both domestic and export markets.

“Although there was a slight decline in demand, the industry continues to produce because it anticipates improvements in both the Indonesian and global economies,” Febri said during the August 2026 ICI Release in Jakarta on Monday, August 31, 2026.

This performance aligns with the growth of the non‑oil and gas manufacturing sector (IPNM) in the second quarter of 2026, which expanded 5.32 percent year‑on‑year, up from 5.14 percent in the first quarter. The sector’s growth also outpaced national economic growth of 5.29 percent and contributed 0.97 percentage points to the economy.

Of the 23 manufacturing subsectors analyzed, 22 were in an expansion phase, accounting for 98.6 percent of the IPNM’s GDP in Q2 2026. The subsectors with the highest ICI values in August were the beverage industry and the chemicals and chemical products industry, while the leather, leather goods, and footwear industry experienced contraction.

Among the ICI components, the production index recorded the highest reading in August at 55.10, up 0.55 points from July and marking its highest level since June 2026.

The orders index stood at 53.13, despite declining 0.67 points from the previous month. Meanwhile, the product inventory index remained in contraction at 46.02 after falling 3.16 points, reaching its lowest level since January 2024.

Based on market orientation, the export‑oriented ICI stood at 53.09 in August, slowing by 0.86 points from July’s 53.95. The domestic‑oriented ICI also remained in expansion at 51.13, down 0.86 points from July’s 51.99.

Febri said the slowdown in both export‑oriented and domestic‑oriented indices shows that industry players are facing more selective demand conditions.

“Therefore, the sustainability of manufacturing activities will be significantly influenced by the industry’s ability to maintain market share, improve production efficiency, and ensure the smooth supply of raw materials and distribution,” he said. (Gusti Panji)