Manufacturing Growth to Exceed National Economy Throughout 2025: Minister

  • 26 Jan 2026 16:27 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - Minister of Industry Agus Gumiwang Kartasasmita said Indonesia’s manufacturing performance is expected to strengthen structurally throughout 2025, placing the country among the world’s top performers in Manufacturing Value Added (MVA).

The national processing industry recorded a significant increase in added value in 2024, reflecting the success of productivity, and efficiency-driven industrial transformation.

“MVA in Indonesia in 2024 reached USD 265.07 billion. With this achievement, Indonesia ranked 13th globally,” Minister Agus said during a workshop with the House of Representatives Commission VII at the Senayan Parliament Complex in Jakarta on Monday, January 26, 2026. The figure far exceeds the global average MVA of around USD 78.73 billion.

Agus emphasized that the achievement demonstrates the growing competitiveness of Indonesia’s manufacturing sector. He noted that Indonesia ranks fifth in Asia, behind China, Japan, India, and South Korea, while at the ASEAN level, Indonesia leads the region. “Thailand’s MVA is only about half of Indonesia’s achievement,” he added.

He explained that the strong MVA performance is consistent with national manufacturing exports. From January to November 2025, non-oil and gas manufacturing exports reached USD 205.93 billion, accounting for 80.27 percent of total national exports.

“The non-oil and gas processing industry trade balance recorded a surplus of USD 35.95 billion,” Minister Agus said, adding that the surplus underscores Indonesia’s competitiveness in the global market.

Despite the strong export performance, Minister Agus noted that domestic demand continues to dominate the structure of manufacturing output, absorbing 78.39 percent of total production.

Only 21.61 percent was shipped to export markets, leaving ample room for expansion of value-added exports. With total manufacturing output reaching IDR 8,381 trillion (USD 499.78 billion) in 2024, he said opportunities for industrial growth remain wide open.

The government is encouraging industries to increase their contribution to value-added exports, and Agus expressed optimism that Indonesia’s global MVA ranking will continue to improve. “I am confident that in two or three years, Indonesia can overtake the Asian countries currently ahead of us,” he said. (Gusti Panji/Lasti Martina)

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