In the first quarter of 2026, the Indonesian economy grew by 5.61 percent year-on-year (yoy), with the manufacturing industry continuing to dominate the economic structure, contributing 19.07 percent to GDP.
"The manufacturing industry's performance remains solid due to increasing demand, both domestically and internationally. This confirms that manufacturing remains the backbone of the national economy,” Industry Minister Agus Gumiwang Kartasasmita said in his statement on Wednesday.
The minister noted that this performance is inseparable from government policies that support strengthening the industrial sector while protecting domestic workers.
Throughout the first quarter of 2026, the manufacturing industry recorded growth of 5.04 percent yoy and became the largest source of economic growth, contributing 1.03 percent, higher than trade, agriculture and construction.
The growth of the manufacturing industry was supported by several leading subsectors. The food and beverage industry grew by 7.04 percent, driven by increased demand during Ramadan and Eid al-Fitr holidays, as well as increased production and exports of related commodities.
The metal goods, computer, electronic goods, optical and electrical equipment industry recorded the highest growth of 10.35 percent, in line with increasing global demand for electronic components and batteries.
Meanwhile, the chemical, pharmaceutical and traditional medicine industry grew by 7.41 percent, supported by increased production for domestic needs and export.
The government will continue to carry out strategic policies to maintain the momentum of industrial growth, including through the provision of stimulus and incentives, as well as protection policies for industry and workers.
Furthermore, the government is also encouraging an increase in the manufacturing export ratio. Currently, around 80 percent of manufacturing output is absorbed by the domestic market, with around 20 percent exported.
"We want to increase export contributions without reducing the domestic share. This means maintaining protection for the domestic market, but we must also increase the expansion of manufacturing products to the global market to increase production utility and absorb a larger workforce," Kartasasmita explained.
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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Arie Novarina
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