Jakarta, INTI - The Ministry of Industry has affirmed that investment in Indonesia’s manufacturing sector continues to grow sustainably, as reflected in the realization of new production capacities and other indicators of real investment.
Responding to statements from some parties questioning the sustainability of manufacturing investment, the Ministry of Industry stated that such views are inaccurate and do not fully reflect factual data.
According to data from the Ministry of Industry as of January 15, 2026, there are 1,236 industrial companies that completed their construction phase in 2025 and are ready to begin production for the first time in 2026. The establishment of this new production capacity serves as concrete evidence that manufacturing investment is not only growing but also being realized in the real sector.
The industrial investment in 2026 is expected to absorb 218,000 new workers. These new industries come from overseas relocation, expansion, or new investments. They are anticipated to contribute to GDP and further increase the existing GDP from the industrial sector.
“Investment inflows into the industrial sector cannot be assessed based on a single sentiment indicator. The fact that more than a thousand industrial companies are ready to operate in 2026 demonstrates that manufacturing investment is ongoing and sustainable,” said Ministry of Industry spokesperson Febri Hendri Antoni Arief in a statement in Jakarta on Wednesday, February 4, 2026.
Febri added that the perception that manufacturing investment is not growing contradicts official government data. The latest export-import release from the Central Statistics Agency (BPS) shows that capital goods imports in 2025 increased by more than 34.66 percent compared to 2024.
These capital goods imports mainly consisted of machinery and mechanical equipment, which are directly linked to new investment activities and the expansion of production capacity or industrial growth.
Real Activity Indicators Confirm Expansion
“A significant increase in capital goods imports, particularly machinery and mechanical equipment, is a strong indicator that manufacturing investment has actually grown rapidly, especially throughout 2025. This shows that the industry is expanding and modernizing its production capacity,” emphasized the spokesperson.
In addition, the realization of new production in 2026 is expected to be supported by substantial investment in the non-oil and gas processing industry sector, with the potential to absorb hundreds of thousands of workers. This will also strengthen the national industrial structure and maintain the momentum of manufacturing growth above five percent.
The Ministry of Industry considers real activity-based indicators, such as the number of companies starting production, realized investment, and capital goods imports, to provide a far more comprehensive picture of manufacturing investment conditions compared to survey-based indicators alone.
Policy Support for Sustainable Industrial Growth
Looking ahead, the Ministry will continue to promote a stronger industrial investment climate through downstreaming policies, development of industrial zones, Industry 4.0 transformation, and strengthening both domestic and export markets. These measures aim to ensure that manufacturing investment not only grows but is also sustainable and has a tangible impact on the national economy.
“With these policies, we are optimistic that manufacturing investment will continue to grow, create jobs, and make a significant contribution to national economic growth,” concluded Febri.
Conclusion
Indonesia’s manufacturing sector is experiencing robust and sustainable growth, supported by new production capacities, rising capital goods imports, and strategic government policies. With over 1,200 companies ready to commence production in 2026, investment is translating into real economic impact, creating jobs, modernizing industry, and strengthening the national industrial ecosystem. The combination of expansion, modernization, and policy support signals a positive trajectory for Indonesia’s industrial transformation.
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