JAKARTA, 03/02/2026— The automotive industry has been playing as a key contributor to the increase in the Industry Confidence Index (IKI). In January 2026, the IKI reached 54.12, a 2.22-point increase compared to December 2025 and a 1.02-point increase compared to January 2025.
Ministry of Industry (Kemenperin) Spokesperson Febri Hendri Antoni Arief stated that the strengthening IKI was endorsed by increased production activity in response to rising demand ahead of Ramadan and Eid al-Fitr. “Industry players are starting to intensify production to meet increased demand,” Febri said in a statement at the January 2026 IKI Release, Thursday, 29 January 2026.
The Motor Vehicle, Trailer, and Semi-Trailer Industry subsector recorded the highest IKI value, along with the machinery and equipment industry. The performance of these subsectors was also influenced by the positive response of business actors to the incentive policies currently being discussed between the Ministry of Industry and the Ministry of Finance.
From the production side, the production index rose to 54.86 after contracting for seven months, while the order index reached 55.27. The Ministry of Industry noted that 20 of the 23 manufacturing industry subsectors are in an expansion phase and contribute 94.7 percent to the non-oil and gas Gross Domestic Product (GDP). However, several subsectors are still experiencing contraction, particularly the leather, wood, and computer and electronics industries.
The IKI survey showed that 78.5 percent of business players stated that their business activities are improving and stable, with an optimism level reaching 72.5 percent. Febri added that the strengthening industrial performance was also supported by the realization of investment in the processing industry, which reached Rp 218.2 trillion in the fourth quarter of 2025. “The January 2026 IKI achievement provides initial capital for the national industry to grow sustainably throughout the year,” he said. (*)
