Indonesia’s manufacturing sector strengthened in May 2026, with the Industrial Confidence Index (ICI) rising to 53.56 from 51.75 in April, signaling continued expansion. The Ministry of Industry attributed this optimism to President Prabowo’s decision not to raise subsidized fuel prices, which helped stabilize inflation and maintain purchasing power. Production saw the sharpest increase, reaching 55.20, its highest level since January 2025, while orders and inventories also remained in the expansion zone. Out of 23 subsectors, 20 recorded growth, led by ready-to-wear apparel and paper industries, with both export-oriented and domestic market industries showing stronger confidence. The non-oil and gas manufacturing sector expanded 5.14 percent year-on-year in Q1 2026, contributing USD 54.98 billion, or 82.25 percent of Indonesia’s total exports. Export-based industries posted an ICI of 53.73, while domestic-focused industries rose to 53.46. The Ministry highlighted that small and medium industries (IKMA) also continued to grow, supported by household consumption and retail sector expansion, reinforcing manufacturing’s role as a key driver of Indonesia’s economy.Source: https://rri.co.id/en/business/2445319/indonesias-industrial-confidence-index-hits-5356-in-may-govt (ICE GIACARTA)

Fonte notizia: rri.co.id, 26 May 2026