Indonesia weighs additional industrial incentives as confidence rises
The government is also seeking to lift industrial capacity utilisation from nearly 70% to between 80% and 85%.
Indonesia’s Industry Minister Muhammad Sarmuji is considering further incentives for industry, citing improving confidence and performance. Speaking in Jakarta on 26 October 2026, he said possible measures would first need to be mapped out.
Sarmuji said more detailed discussions would follow coordination with the Coordinating Ministry for Economic Affairs on what support could be offered. He said additional incentives could help stimulate industrial activity while confidence was strengthening.
The Industrial Confidence Index reached 51.93 in September 2026, above the 50 threshold for expansion. Bank Indonesia’s Prompt Manufacturing Index stood at 52.28 in the third quarter of 2026, compared with 51.66 in the corresponding period a year earlier.
Deputy Coordinating Minister for Economic Affairs Drajad Hari Wibowo said industry was also seeing demand increase ahead of Christmas and New Year 2026/2027. He said the government was pushing for greater use of industrial capacity, aiming to raise utilisation from nearly 70% to between 80% and 85%.
