Indonesia’s Manufacturing Remains Economic Backbone

RRI.CO.ID, Jakarta - Indonesia’s manufacturing sector successfully anchored the national economy throughout 2025, according to Industry Minister Agus Gumiwang Kartasasmita.

Citing data from the Central Bureau of Statistics (BPS), he confirmed that processing industries remained the largest contributor to Gross Domestic Product (GDP), accounting for 19.07 percent.

The sector has shown steady growth over the past three years, rising from 18.67 percent in 2023 and 18.98 percent in 2024 to its current peak.

Growth performance also strengthened significantly. After expanding 4.43 percent in 2024, the sector accelerated to 5.30 percent in 2025, providing the largest single boost to national economic growth at 1.07 percent.

“The processing industry is not only the largest contributor but also dominates national economic growth compared to other sectors,” Minister Agus said in Jakarta on Friday, February 6, 2026, as quoted by Antara.

Foreign trade performance further underscored the sector’s resilience. Exports from manufacturing grew by 7.03 percent in 2025, following 6.85 percent in 2024 and 1.73 percent in 2023.

Meanwhile, imports of goods and services declined, falling by 4.77 percent in 2025 after drops of 8.15 percent in 2024 and 1.24 percent in 2023. “Based on this BPS data, there has been an increase in exports and a decrease in imports over the last three years. This proves that the strengthening of the national industrial structure has occurred,” he explained.

Minister Agus emphasized that the data effectively dismisses concerns of “premature deindustrialization” in Indonesia. He credited the sector’s resilience during a challenging year to President Prabowo Subianto’s Asta Cita, eight main development goals, and its implementation through the New National Industrialization Strategy (SBIN).

To maintain momentum, the Ministry of Industry’s 2026 roadmap will focus on integrating small-scale industries into the supply chains of major domestic and national corporations.

This policy aligns with the President’s directive to strengthen economic equity. “In accordance with the President’s directive to strengthen small industries, we will increase their integration into the national industrial supply chain. This will not only strengthen domestic industrial independence but also contribute to national economic equality,” Minister Agus noted.

He concluded by emphasizing that the manufacturing sector is now the primary driver of Indonesia’s economic transformation toward a more productive and sustainable economy.

Despite heavy challenges in 2025, he praised industrial stakeholders for maintaining optimism and production levels, ensuring the sector closed the year as the dominant force in the national economy. ***