Indonesia's Industrial Confidence Index Rises Slightly in July 2026

The Indeks Kepercayaan Industri (IKI) for July 2026 increased to 53.10, up 0.20 points from June's 52.90 and 0.21 points year‑on‑year. The Ministry of Industry reported that 22 of 23 manufacturing subsectors were in expansion, accounting for 98.6% of the sector's contribution to GDP. The beverage and motor‑vehicle/trailer subsectors posted the highest IKI scores.

Economist Yusuf Rendy Manilet cautioned that the modest rise reflects technical optimism rather than a genuine recovery, noting that the manufacturing Purchasing Managers' Index remains in contraction. He said, "Angka IKI Juli ini menarik karena bergerak berlawanan dengan beberapa indikator manufaktur lain pada periode yang sama. Karena itu, saya melihatnya secara hati‑hati dan tidak menganggapnya sebagai sinyal bahwa sektor manufaktur sudah benar‑benar pulih."

Ministry spokesperson Febri Hendri Antoni Arif highlighted that production and demand pressures were largely resolved in July, stating, "Pada bulan Juli 2026 ini, dua tekanan pada sisi produksi dan di sisi permintaan telah teratasi dengan baik sehingga nilai Indeks Kepercayaan Industri menjadi 53,10." He attributed the improvement to government programmes such as the free nutritious meals (MBG) initiative, the B50 biodiesel mandate, and village‑cooperative projects that have boosted domestic demand for processed‑food, palm‑oil, and construction materials.