Indonesia Boosts Manufacturing Capacity Amid Global Uncertainty

RRI.CO.ID, Jakarta - Indonesia’s manufacturing industry continues to demonstrate resilience amid ongoing uncertainty in the global economy. One indication is the 9.20 percent growth recorded by the metal products, computers, electronics, optical products, and electrical equipment industry group in the second quarter of 2026. The development reflects the continued strengthening of Indonesia’s electronics industry, including through increased production capacity and the expansion of manufacturing facilities.

“We appreciate Midea and PT Jaya Refrigeration Equipment for their commitment to expanding investment and production activities in Indonesia. This reflects business confidence in the prospects of the national manufacturing sector,” Vice Minister of Industry, Faisol Riza, said at the 3 Million Units Production Milestone and Inauguration of the Midea Indonesia Factory in Cikarang on Wednesday, September 9, 2026.

Faisol said the 9.20 percent growth of the metal products, computers, electronics, optical products, and electrical equipment industry group in the second quarter of 2026 highlights the sector’s important role in Indonesia’s manufacturing structure.

During the same period, air conditioners (ACs) recorded a trade surplus of USD103.70 million, while refrigerators posted a surplus of USD96.39 million. Washing machines, meanwhile, continued to record a trade deficit of around USD100 million. The figures indicate significant room to further strengthen domestic production.

“Strengthening domestic production needs to go hand in hand with the development of a broader industrial ecosystem. This includes stronger supply-chain linkages, greater use of locally made components, human resource development, as well as technological and innovation capabilities,” he said.

To date, Midea Electronics Indonesia has established various industrial facilities in Cikarang and Karawang through PT Jaya Refrigeration Equipment. The facilities manufacture a range of home appliances, including air conditioners, washing machines, refrigerators, and freezers.

“The development of these facilities is part of the company’s long-term commitment to expanding its manufacturing activities in Indonesia,” he said. At the event, Midea marked the production of three million units while inaugurating its AC and refrigerator manufacturing plant. The production figures include 2.25 million AC units, one million refrigerators, and 367,500 washing machines.

In addition to serving the domestic market, Midea Electronics Indonesia has also expanded its export activities. As of 2026, the company had exported two million units to ASEAN and North American markets.

“This export achievement demonstrates Indonesia’s role in supporting international market demand. The development of domestic production facilities also strengthens Indonesia’s position as part of the company’s global production and business network,” he said.