Electricity Outage Makes Industry Performance Slow in June 2026

Ministry of Industry Spokesperson Febri Hendri Antoni Arif. (Photo: ANTARA)

JAKARTA - The Ministry of Industry (Kemenperin) reported that the industrial confidence index (IKI) in June 2026 reached 52.90.

This figure decreased by 0.66 points compared to IKI in May 2026 which was recorded at 53.56.

This was conveyed by the spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif in the IKI June 2026 Release at the Ministry of Industry's office, Jakarta, Tuesday, June 30.

"The IKI value in June 2026 is 52.90, still expanding above 50, although it slowed down 0.66 points compared to May 2026 which was 53.56," said Febri.

"In June, the challenge (industry) is not only production, but demand," he continued.

Febri explained that the industry's challenges in this sixth month are not only related to the increase in world energy prices and the weakening of the rupiah exchange rate which makes the price of raw materials soar.

More than that, said Febri, the industry's challenges increased due to the power outage in June 2026.

This condition causes industries and industrial areas that use electricity as part of production to stop their production during the blackout.

Apart from power outages, the industry is facing challenges due to rising gas prices, especially those from LNG regasification. However, Febri stated that the Ministry of Industry appreciated the efforts of the DPR and the government to reduce the price of regasified gas to 13 US dollars per MMBTU.

According to Febri, the price reduction is a breath of fresh air for the industry, especially those that use gas as raw materials or enter the HGBT program.

Apart from challenges from the industry, Febri said, the business world is experiencing demand challenges.

He said that demand was still quite high in May 2026 and inflation was still under control, so that people's purchasing power was maintained, especially for buying manufactured products.

However, in June 2026, Febri said, the Ministry of Industry was looking at the increase in the price of household consumer goods.

The increase in the price of non-subsidized fuel, said Febri, also eroded people's purchasing power.

The Ministry of Industry has observed that the spending of people who use non-subsidized fuel is decreasing, especially for buying manufactured products.

From all challenges, Febri stated, the industry is still resilient, especially supported by a fairly large domestic demand. The Ministry of Industry estimates that purchasing power will remain maintained.

It is known that government spending, especially priority programs such as free nutritious meals, village cooperatives, B50 implementation and fishing villages will increase demand for manufactured products.

"That is, in our opinion, one of the pillars of increasing domestic demand," said Febri.

Based on the components of the formation of IKI June 2026, there are 22 expansion subsectors and one contraction.

Dozens of expansion subsectors contributed 98.6 percent to the total gross domestic product of the non-oil and gas industry in the first quarter.

The highest subsector is beverages and ready-made clothing. Meanwhile, the contracted subsector is the leather, leather goods and footwear subsector.

Based on the value of the variables, new orders slowed down 0.12 points to 53.35. The production variable also slowed down 0.92 points in June 2026.

Likewise, the variable of product inventory decreased by 1.61 and was in the contraction zone.

Based on market orientation, the Ministry of Industry noted that the performance of the domestically oriented industry decreased by 2.30 to 51.16.

Meanwhile, the export-oriented industry experienced growth of 0.33 points to 54.06.

"However, our export-oriented industry has seen its performance improve to 54.06. This is due to the fact that the export destination countries for these industrial products are experiencing positive growth," explained Febri.