Executive Summary

Key insights and market outlook

The Indonesian manufacturing sector experienced a slowdown in December 2025, with the Indeks Kepercayaan Industri (IKI) decreasing by 1.55 points to 51.90 ¹

². Despite the decline, the sector remains in the expansion zone. The slowdown is attributed to seasonal factors at the end of the year ¹. Manufacturers are adopting a wait-and-see approach in anticipation of government policies and incentives for the upcoming year ².

Full Analysis

02

Deep Dive Analysis

Indonesian Manufacturing Sector Slows Down in December 2025

Decline in Indeks Kepercayaan Industri (IKI)

The Indonesian manufacturing sector experienced a slowdown in December 2025, with the Indeks Kepercayaan Industri (IKI) decreasing by 1.55 points to 51.90 ¹

². This decline indicates a slower growth pace in the manufacturing sector, despite remaining in the expansion zone.

Seasonal Factors and Wait-and-See Approach

The slowdown is attributed to seasonal factors at the end of the year ¹

, where manufacturers typically experience a decrease in production and sales. Additionally, manufacturers are adopting a wait-and-see approach in anticipation of government policies and incentives for the upcoming year ². This cautious stance is reflected in the decrease of new orders and production levels.

Detailed IKI Data

According to the data released by the Ministry of Industry, the IKI for export-oriented industries decreased by 1.82 points to 52.36, while the IKI for domestic market-oriented industries decreased by 1.38 points to 51.33 ²

. The decline in new orders and production levels contributed to the overall slowdown in the manufacturing sector.

References