Indonesia sets industrial capacity use target of 80–85 per cent
Manufacturing exports totalled US$159.55 billion as of August 2026, representing 82.40 per cent of Indonesia’s total exports.
Industry Minister Muhammad Sarmuji has set an 80–85 per cent target for Indonesia’s industrial capacity utilisation, compared with the current 66.13 per cent. The aim is to increase manufacturing’s role in the national economy.
At Kadin’s 2026 National Leadership Meeting in Jakarta, the minister dismissed concerns about deindustrialisation. Greater use of existing capacity would allow domestic industry to expand, he said.
Sarmuji said non-oil and gas manufacturing recorded growth of 5.32 per cent in the second quarter of 2026, ahead of the economy’s 5.29 per cent expansion. For 2025, he cited manufacturing growth of 5.3 per cent and national economic growth of 5.11 per cent.
Manufacturing represented 38.98 per cent of total national investment realised. Its exports amounted to US$159.55 billion as of August 2026, equivalent to 82.40 per cent of the country’s exports.
The Industrial Confidence Index (IKI) registered 53.77 in October 2026. Indonesia’s manufacturing Purchasing Managers’ Index (PMI) was 52.1 in September 2026.
Sarmuji also cited the domestic market, with a population of 287.2 million, as support for industrial growth. Domestic buyers absorbed 78 per cent of manufacturing output, and he said that market helped sustain industrial resilience amid global economic volatility and international disruptions.
