Indonesia’s manufacturing sector delivered a strong employment boost at the start of 2026, with 1,236 industrial companies commencing production and creating jobs for 218,892 people, according to the Ministry of Industry.
Industry Minister Agus Gumiwang Kartasasmita said the new operations, recorded as of January 15, signal resilience in the national manufacturing base despite persistent global economic uncertainty. The companies had completed their construction phase in 2025 and moved into full operations this year, supported by investments worth Rp551.88 trillion (around US$32.6 billion) in the non-oil and gas manufacturing sector.
Manufacturing remains central to Indonesia’s workforce strategy for 2026. The government is targeting non-oil and gas manufacturing GDP growth of 5.51% this year, reinforcing the sector’s role as the backbone of national economic growth. Kartasasmita said manufacturing growth has consistently remained above 5% and is expected to be sustained through continued industrial expansion.
From an employment perspective, the non-oil and gas manufacturing sector is projected to absorb 14.68% of Indonesia’s total workforce in 2026. Labour productivity is targeted at Rp126.2 million per worker annually, highlighting the government’s focus on both job creation and output efficiency.
To support these goals, investment in the non-oil and gas manufacturing sector is expected to rise significantly to Rp852.9 trillion in 2026. The Ministry of Industry is also accelerating Industrial Transformation 4.0 initiatives and strengthening industrial development from upstream to downstream to improve workforce readiness and competitiveness.
In response to global volatility and increasingly complex industrial challenges, the ministry has introduced a New National Industry Strategy. The strategy prioritises stronger forward and backward linkages between upstream industries, manufacturing, and services to reinforce supply chains, improve production efficiency, and expand sustainable employment opportunities across the industrial ecosystem.