Indonesia’s manufacturing sector created jobs for 218,892 people in early 2026, the Ministry of Industry reported, as 1,236 industrial companies began operations by January 15. These companies completed construction in 2025 and moved into full production this year with support from investments worth around USD 32.6 billion in the non-oil and gas manufacturing segment. The Minister of Industry said this employment growth signals resilience in the national manufacturing base amid ongoing global economic uncertainty.
The government is targeting growth of 5.51% in the non-oil and gas manufacturing share of gross domestic product in 2026, reflecting its view of the sector as central to economic expansion. Manufacturing growth has remained above 5% and is expected to continue through further industrial development. The sector is also projected to employ about 14.68% of Indonesia’s total workforce in 2026. The ministry has set a labor productivity target of USD 7,512 per worker per year and plans to support this with increased investment.
To strengthen the sector, the government expects investment in non-oil and gas manufacturing to rise to about USD 50.71 billion in 2026. This includes expansion of industrial transformation initiatives and efforts to improve workforce readiness and competitiveness. The Ministry of Industry has also introduced a New National Industry Strategy, prioritizing stronger linkages between upstream industries, manufacturing, and services to reinforce supply chains, raise production efficiency, and expand sustainable employment opportunities across the industrial ecosystem.
(Source: Economic Times)
