The Europe Today

Discover, Engage & Empower

Indonesia Strengthens National Electronics Industry to Boost Manufacturing Competitiveness

Electronics

Jakarta, September 11, 2026 – The Europe Today: Indonesia’s Ministry of Industry is strengthening the country’s national electronics industry by expanding production capacity, reinforcing supply chains and developing manufacturing facilities to enhance the competitiveness of domestic industries.

Deputy Minister of Industry Faisol Riza said in Jakarta on Friday that strengthening the electronics sector was essential to maintaining national manufacturing resilience amid evolving global economic conditions.

He noted that the initiative was supported by strong growth in the metal goods, computer, electronics, optical and electrical equipment industry, which expanded by 9.20 percent in the second quarter of 2026.

Riza highlighted the sector’s strategic importance to Indonesia’s manufacturing structure, citing trade performance in several major household appliance segments. During the period, air conditioners recorded a trade surplus of US$103.70 million, while refrigerators posted a surplus of US$96.39 million. The washing machine sector, however, continued to record a trade deficit of approximately US$100 million.

According to Riza, the figures demonstrate considerable opportunities to further expand domestic production capacity and strengthen Indonesia’s industrial ecosystem.

He emphasized that increasing domestic production should be accompanied by broader industrial development, including stronger supply-chain connectivity, greater utilization of domestic components, human resource development, and enhanced technological capabilities and innovation.

On September 9, Riza commended Midea and PT Jaya Refrigeration Equipment for their commitment to expanding investment and manufacturing operations in Indonesia, marked by the production of the company’s three-millionth unit.

Midea Electronics Indonesia has established manufacturing facilities in Cikarang and Karawang through PT Jaya Refrigeration Equipment. The facilities produce a range of household appliances, including air conditioners, washing machines, refrigerators and freezers.

During the event, Midea marked the production of its three-millionth unit and inaugurated a new factory dedicated to manufacturing air conditioners and refrigerators.

In addition to serving the domestic market, Midea Electronics Indonesia is expanding its export operations. By 2026, the company is projected to have exported two million units to ASEAN countries and North America.

Riza said the expansion of Midea’s manufacturing facilities was expected to generate broader benefits for Indonesia’s national industrial ecosystem by increasing production capacity, strengthening supply chains, promoting the use of domestic components, developing workforce capabilities and accelerating the adoption of technology and innovation.

He added that the Ministry of Industry remained committed to creating a conducive business environment through various policy instruments, including mandatory Indonesian National Standards (SNI) and Domestic Component Level (TKDN) requirements.

These measures, he said, were aimed at maintaining product quality, strengthening Indonesia’s industrial structure and increasing value addition within the domestic manufacturing sector.