Kemenperin Claims 1,236 Industrial Companies Ready to Operate in 2026, Serap 218,892 Workers

Job vacancy (photo: dok. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) claims that there are 1,236 industrial companies entering the development phase in 2025 and are planned to start producing for the first time in 2026.

The production plan is expected to absorb up to 218,892 workers.

"We assess that the production capacity of the national industry in 2026 will strengthen further," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita, quoted from a written statement, Monday, January 19.

Agus said that the production plan was supported by investments in the non-oil and gas processing industry sector reaching IDR 551.88 trillion, with an investment value outside land and buildings of IDR 444.25 trillion.

"The new production capacity, which will start operating in 2026, is an important factor in maintaining industrial supply, strengthening the manufacturing structure, and creating new jobs," he said.

In the midst of global economic dynamics that are still marked by uncertainty, according to Agus, the national manufacturing industry sector continues to face various structural and external challenges.

Even so, the manufacturing sector still has a strong foundation for growth and contributes significantly to the national economy.

"The manufacturing industry continues to grow above 5 percent and plays a role as a driving force for the national economy. We are optimistic that this performance can continue to be maintained and improved throughout 2026," he said.

He said, the direction of the manufacturing industry policy in 2026 is not only focused on maintaining the momentum of growth, but also strengthening the national industrial structure sustainably. Strengthening added value in the country, deepening the structure of the industry as well as optimizing intersectoral linkages are the main focus of the policy.

In 2026, the growth of the Gross Domestic Product (GDP) of the non-oil and gas processing industry is targeted to reach 5.51 percent. This target confirms the strategic role of the manufacturing industry as the backbone of national economic growth.

On the other hand, the Ministry of Industry also continues to encourage the acceleration of industrialization, the transformation of industry 4.0, and the strengthening of upstream and downstream industries, to ensure the sustainability of raw material supply and the efficiency of the national production chain.

If viewed from the demand side, the growth of the national manufacturing industry in 2026 is still supported by the domestic market of around 80 percent and the export market of 20 percent.

For the domestic market, the Ministry of Industry is trying through several policies, such as strengthening the import substitution policy and increasing TKDN, optimizing government and BUMN spending for domestic products, and strengthening the MSME so that they can become part of the national industrial supply chain.

"We ensure that domestic industrial products become hosts in the domestic market. Strengthening the domestic market is the main anchor for the growth of the manufacturing industry," said Agus.

According to Agus, several subsectors are predicted to experience significant demand growth in the domestic market, such as the basic metal industry which will grow high driven by the continuation of infrastructure projects and industrial downstreaming.

Followed by the food and beverage industry sector which is still the largest contributor to the manufacturing GDP due to its nature as a basic need and the large number of residents.

There is also a chemical, pharmaceutical and drug industry that will grow high with the domestic demand for health products and chemicals after the pandemic and the growth of derivative industries.

Meanwhile, for the export market, the Ministry of Industry targets a contribution of exports of non-oil and gas processing industrial products this year to reach 74.85 percent of total national exports, as stated in the Strategic Plan of the Ministry of Industry 2025-2029.

The effort is carried out through export market diversification, increasing the competitiveness of industrial products, as well as strengthening trade cooperation and promoting national industries in the global market.

In terms of employment, the non-oil and gas processing industry is targeted to absorb 14.68 percent of the total national workforce by 2026, with labor productivity of IDR 126.20 million per person/year.

To support this target, investment in the non-oil and gas processing industry sector in 2026 is targeted to reach IDR 852.90 trillion.

The Ministry of Industry assessed that the sustainability of government policies, including stimulus packages, controlling imported finished goods that flooded the domestic market and improving licensing were key factors in creating a conducive business climate for the industry.