Indonesia's Labor-Intensive Industries Rebound in Q2 2026: Minister

Indonesia's labor-intensive industries have demonstrated a significant rebound in the second quarter of 2026. This recovery was primarily driven by sectors such as apparel, footwear, and leather goods, which propelled the overall growth of the manufacturing sector. The trend is understood to be supported by increasing domestic and international demand. Factors contributing to the revival of these industries include the restructuring of global supply chains and the robust domestic consumption within Indonesia. The government anticipates that the growth of these labor-intensive industries will significantly contribute to job creation. These sectors, which do not require substantial capital investment and employ a relatively large workforce, play a crucial role in expanding employment opportunities for the youth and in rural areas. However, the sustainability of this recovery faces challenges such as global economic uncertainties, fluctuations in raw material prices, and the transition towards industries with higher technological capabilities. The government is committed to continuously implementing policies aimed at strengthening industrial competitiveness and increasing added value. Information Source: Antara News (English)