Industrial Confidence Index Falls to 51.75 in April, Seven Subsectors Contract

JAKARTA - The Ministry of Industry (Kemenperin) recorded that the industrial confidence index (IKI) in April 2026 reached 51.75.

This figure decreased by 0.11 points compared to IKI in March 2026 which was recorded at 51.86.

This was conveyed by the spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif in the IKI Release April 2026 at the Ministry of Industry's office, Jakarta, Wednesday, April 29.

"In April 2026, the processing industry or the manufacturing sector, the IKI is 51.75. This means that the processing industry in April 2026 is still expanding, even though it slowed down by 0.11 points compared to March 2026 of 51.86," said Febri.

Structurally, of the 23 subsectors of the processing industry analyzed, as many as 16 subsectors are in the expansion phase and seven subsectors are contracting.

The still growing subsector has a dominant contribution, namely around 78.9 percent of the gross domestic product (GDP) of the non-oil and gas processing industry, reflecting the main base of the national industry is still relatively strong.

The two subsectors with the highest performance in April 2026 were contributed by the tobacco processing industry (KBLI 12) and the paper and paper goods industry (KBLI 17). The performance of the paper industry is assessed in line with the trend of packaging substitution from plastic to paper-based materials.

"The two subsectors of the industry with the highest IKI value are the tobacco processing industry (KBLI 12) and the paper and paper goods industry (KBLI 17)," he said.

Meanwhile, the subsectors that experienced contraction include the beverage industry (KBLI 11), the textile industry (KBLI 13), the wood industry, goods from wood and cork and woven goods from bamboo, rattan and the like (KBLI 16), the chemical industry and goods from chemicals (KBLI 25).

Then, the non-metallic mineral goods industry (KBLI 23), the metal goods industry, not its machines and equipment (KBLI 25) and other transport equipment industry (KBLI 30).

In terms of the components that make up IKI, the new order variable was recorded as slowing down 0.77 points to 51.43. The production variable also fell 0.21 points to 51.34. On the other hand, product inventories actually increased 1.66 points to 53.13, indicating a stock build-up amid slowing demand.

Based on market orientation, the export-oriented industry still recorded expansion with IKI of 52.28, although it fell 0.45 points compared to the previous month which was 52.73. Meanwhile, the industry focused on the domestic market showed improvement with IKI rising to 50.90 from the previous 50.44.

Meanwhile, external pressures, including geopolitical turmoil that triggered the energy crisis, are still considered to have a limited impact. However, it is felt in certain subsectors such as chemicals and textiles.

In terms of business actors' perceptions, as many as 72.5 percent of respondents stated that business conditions in April 2026 were in the category of improving and stable. In detail, 30.8 percent said it was improving, while 41.7 percent was stable. However, the proportion of business actors who stated that business conditions had decreased increased to 27.6 percent.

The optimism of business actors for the next six months was also recorded to slow down. As many as 23.5 percent of business actors stated that their business conditions were stable, up 2.1 percent compared to the previous month's percentage. Meanwhile, the percentage of pessimism fell 0.4 percent to 6.4 percent.

On the other hand, the realization of national investment in the first quarter of 2026 reached IDR 468.8 trillion or grew 7.2 percent year-on-year. Secondary sector investment contributed 36.5 percent of the total.

Trade performance also showed moderate movement. Febri said that the export of non-oil and gas processing industries was recorded as a slight increase of 0.3 percent on a monthly basis in February 2026, followed by an increase in imports, especially in capital goods which increased by 2.8 percent.