Key insights and market outlook
KADIN Indonesia projects that the manufacturing sector will remain the main engine of national economic growth in 2026. The industry is seen as crucial for boosting productivity, creating formal employment, and increasing value-added exports. KADIN Vice Chairman Erwin Aksa emphasized the need for the sector to not only maintain its contribution to GDP but to become more globally competitive.
The Indonesian Chamber of Commerce and Industry (KADIN) projects that the manufacturing sector will remain the primary engine of national economic growth in 2026. According to KADIN Vice Chairman Erwin Aksa, the industry plays a vital role in driving productivity, creating formal employment opportunities, and boosting value-added exports. Aksa emphasized that the challenge lies not just in maintaining the sector's contribution to GDP, but in ensuring that it becomes more competitive on a global scale.
The manufacturing sector is seen as the backbone of Indonesia's economy, providing significant contributions to national development. KADIN believes that for Indonesia to achieve sustainable economic growth, the manufacturing industry must be supported to enhance its global competitiveness. This includes improving productivity, adopting advanced technologies, and developing human resources.
While the manufacturing sector has been a consistent driver of economic growth, it faces several challenges. These include global economic uncertainties, increasing competition from other countries, and the need for continuous innovation. KADIN emphasizes that addressing these challenges will be crucial for the sector's continued success and its ability to contribute to national economic goals.
Manufacturing Sector Projection for 2026
KADIN Economic Forecast