JAKARTA - The Ministry of Industry (Kemenperin) reported that the industrial confidence index (IKI) in May 2026 reached 53.56.
This figure increased by 1.81 points compared to IKI in April 2026 which was recorded at 51.75.
This was conveyed by the spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif in the IKI May 2026 Release at the Ministry of Industry's office, Jakarta, Tuesday, May 26.
"So, the IKI value in May 2026 reached 53.56. Well, a value above 50 means it is still expanding and up 1.81 points compared to the IKI in April 2026 which was 51.75," said Febri.
Febri explained that this achievement occurred amid many dynamics that occurred, both from abroad and domestically. He said, the world today is still influenced by the war in the Middle East which caused a global energy crisis.
In addition, Febri said, his party also noted the weakening of the rupiah throughout May 2026. At the same time, the government has also decided not to raise the price of fuel oil (BBM).
"In the country, we also note that President Prabowo has decided not to raise the price of subsidized fuel and raise the price of non-subsidized fuel. Well, these events have an impact on the supply chain of the industry and also the demand of the industry," he said.
"So, based on industry reports through SIINas and then calculated through the industry confidence index, the value of IKI in May 2026 reached 53.56," he continued.
Febri explained that there were 20 industrial subsectors that expanded, while three other industries contracted. He said that the 20 industrial subsectors that expanded contributed 57.8 percent to the non-oil and gas processing industry's GDP in the first quarter of 2026.
A total of two subsectors with the highest IKI value are the garment industry and the paper and paper goods industry. Meanwhile, the subsectors that experienced contraction include the leather industry, leather goods and footwear, other processing industries, and the subsector of industrial repair and installation of machinery and equipment.
In terms of the forming components, the new order variable experienced acceleration on the demand side of 2.04 points to 53.47. Furthermore, the production variable also experienced acceleration of 3.86 points to 55.20. On the other hand, the variable of product inventory slowed down 1.80 points to 51.33.
For the export market, IKI was recorded at 53.73, still in the expansion phase even though it had accelerated by 1.45 points compared to the previous month. Meanwhile, domestic IKI reached 53.46 was recorded as expansive and experienced an acceleration of 2.56 points.
"That is, the increase is almost equal to the export IKI, 53.46. So, the industry oriented to the domestic market in May 2026 has a higher performance than the export-oriented industry," said Febri.
According to Febri, this condition shows the strength of the confidence of national manufacturing industry actors. He explained, this achievement is an expression of optimism of industry players towards the government's policy of not raising the price of subsidized fuel.
As a result, people's purchasing power is still recorded to grow based on the optimism of business actors in May 2026 to 75.6 percent. Then, the proportion of business actors who stated that their business conditions had improved was recorded at 34.2 percent, up 3.4 percent from the previous month.
Meanwhile, business actors who stated that their condition was stable were 41.4 percent. As for those who stated that their business conditions had decreased, they had decreased by 3.2 percent to 24.4 percent. However, for business actors' optimism in the next six months, it shows a slight slowdown.
The level of optimism of business actors regarding the business conditions in the next six months was recorded at 69.9 percent, slowing down 0.2 percent compared to the previous month. Meanwhile, business actors who considered the conditions stable decreased by 0.8 percent compared to the percentage.
"This, in our opinion, is due to the still existing global uncertainty, especially in the supply chain of domestic industrial raw materials whose raw materials are imported, which is around 24 percent of the total raw materials needed by the industry for production," he concluded.
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