Antara News·Indonesia·Friday, September 11, 2026 at 07:11 AM

Indonesia strengthens electronics industry to boost competitiveness

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Ahmad Muzdaffar Fauzan, Cindy Frishanti Octavia

Jakarta (ANTARA) - The Ministry of Industry is strengthening Indonesia’s national electronics industry by increasing production capacity, strengthening supply chains, and developing manufacturing facilities to boost the competitiveness of domestic industries.

Deputy Minister of Industry Faisol Riza, in a statement in Jakarta on Friday, said strengthening the electronics industry is crucial to maintaining national manufacturing resilience amid global economic dynamics.

He noted that the effort is in line with the growth of the metal goods, computer, electronics, optical, and electrical equipment industry sector, which grew 9.20 percent in the second quarter of 2026, highlighting the sector's strategic role in the national manufacturing structure.

During the same period, air conditioners (ACs) recorded a trade balance surplus of US$103.70 million, while refrigerators posted a surplus of US$96.39 million. However, the washing machine sector still recorded a trade deficit of around US$100 million.

The figures indicate significant opportunities to further increase domestic production capacity and strengthen the domestic industrial ecosystem.

"Strengthening domestic production must go hand in hand with developing a broader industrial ecosystem. This includes supply chain connectivity, increased use of domestic components, human resource development, and the mastery of technology and innovation," he said.

On September 9, Riza commended the commitment of Midea and PT Jaya Refrigeration Equipment to expanding investment and production activities in Indonesia, as reflected in the achievement of a three-million-unit production milestone.

Midea Electronics Indonesia has established various industrial facilities in the Cikarang and Karawang areas through PT Jaya Refrigeration Equipment.

The facilities manufacture a range of home appliances, including air conditioners, washing machines, refrigerators, and freezers.

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

In addition to meeting domestic market demand, Midea Electronics Indonesia continues to expand its export activities. By 2026, the company is projected to have exported two million units to the ASEAN region and North America.

Riza added that the expansion of Midea's manufacturing facilities in Indonesia is expected to have a broader impact on the national industrial ecosystem.

Beyond increasing production capacity, the facilities are expected to strengthen the supply chain, boost the use of domestic components, develop workforce competencies, and expand the adoption of technology and innovation.

He added that the ministry is committed to fostering a conducive business climate through various policy instruments, including mandatory Indonesian National Standards (SNI) and Domestic Component Level (TKDN) requirements. These policies are part of efforts to maintain product quality, strengthen the industrial structure, and increase the value added of manufacturing activities in Indonesia.

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