Government Formulates Incentive Policy for the Manufacturing Industry

The Ministry of Industry ("Kemenperin") has proposed the provision of incentives to domestic manufacturing industries. This proposal is intended to safeguard the national economy amid uncertain global conditions and the depreciation of the Indonesian rupiah exchange rate.

Febri Hendri Antoni Arief, spokesperson for Kemenperin, stated that the proposal for the provision of incentives was submitted by the Minister of Industry, Agus Gumiwang Kartasasmita, to the relevant ministries and agencies, namely the Ministry of Trade and the Ministry of Finance.

“The Minister submitted the letter on 17 March 2026,” he told Hukumonline.

Febri explained that, in the letter, Minister Agus proposed a number of anticipatory measures aimed at safeguarding the national economy through the protection of the manufacturing industry. One of the proposed measures is to sharpen the focus of policies geared toward maintaining the competitiveness of the manufacturing sector, including the provision of fiscal and non-fiscal incentives.

Febri stated that the Ministry is still coordinating with the relevant ministries and agencies to formulate the policy concerning these incentives.

“These discussions are being conducted in collaboration with other ministries and agencies. We will provide further updates in due course,” said Febri.