Indonesia Moves to Expand Domestic Machinery Production

RRI.CO.ID, Jakarta – The Industry Ministry is preparing a roadmap to expand domestic machinery production. The plan will identify the most critical machinery needs across industrial sectors and prioritize their development through local manufacturing.

Director General of Metal, Machinery, Transportation Equipment and Electronics Industries (ILMATE), Setia Diarta, said strengthening the machinery industry is one of the key priorities outlined by the industry minister for the development of the ILMATE sector.

"The focus is on industries that we can develop domestically," Setia said in Jakarta on Monday, Oct. 5, 2026.

According to Setia, the ministry will first conduct audits and reviews to identify the machinery types to prioritize for development. The process is intended to determine which machinery products are most important to develop and manufacture domestically.

The initiative will not focus on a single industrial sector. Instead, machinery needs across a range of industries will be reviewed to identify development priorities.

Setia said a recent meeting with the industry minister also provided an opportunity for the ILMATE Directorate General to present ongoing initiatives, current issues and strategic priorities in the industrial sector.

During the meeting, strengthening the domestic machinery industry was highlighted as a way to maximize national industrial capabilities in developing and producing machinery locally. "So that we can use our strengths to build machinery domestically," Setia said.

He added that following the audit and review process, the ministry will prepare a list of priority machinery products to guide the development of the domestic machinery industry.

The ministry noted that the non-oil and gas manufacturing industry (IPNM) continues to post positive performance. In the second quarter of 2026, IPNM grew 5.32 percent year-on-year (yoy), slightly higher than the national economic growth rate of 5.29 percent.

During the same period, IPNM was the largest contributor to economic growth, contributing 0.97 percentage points.

The sector's performance is expected to provide a stronger foundation for the development of domestic machinery production in line with growing demand from the manufacturing industry. ***