Jakarta. Indonesia is set to see 1,236 new industrial companies begin production for the first time this year, a move expected to strengthen the country’s manufacturing base and create more than 218,000 jobs, the government said on Sunday.

Industry Minister Agus Gumiwang Kartasasmita said the companies, which started construction in 2025, are scheduled to commence operations in 2026 across a range of industrial sectors.

The new facilities are projected to absorb 218,892 workers nationwide.

“New production capacity coming onstream in 2026 is a crucial factor in sustaining industrial activity, strengthening the manufacturing structure, and creating new jobs,” Agus said in a statement.

He added that Indonesia’s manufacturing sector expanded by more than 5% last year and continues to serve as a key driver of national economic growth.

According to the Industry Ministry, total manufacturing investment excluding oil and gas reached Rp 551.88 trillion ($32.7 billion) last year, including Rp 444.25 trillion in investment outside land and building assets.

For 2026, the government is targeting growth of 5.51% in non-oil-and-gas manufacturing gross domestic product, with the base metals, food and beverage, and pharmaceutical industries expected to be the main contributors.

Agus also stressed the importance of strengthening domestic demand to support industrial growth.

“We are ensuring that domestically produced industrial goods become the mainstay of the domestic market. Strengthening the domestic market is the primary anchor for manufacturing growth,” he said.

At the same time, the Ministry of Industry is pursuing global markets, targeting manufacturing exports to account for nearly 75% of Indonesia’s total exports in 2026. To support this ambition, investment in the manufacturing sector this year is being targeted at Rp 852.90 trillion, the ministry said.