The Manufacturing Industry Dominates National Economic Performance

RRI.CO.ID, Jakarta - The processing industry once again asserted its dominance in the national economic performance throughout 2025. According to data from the Central Statistics Agency (BPS), the processing industry became the sector with the largest contribution to national Gross Domestic Product (GDP), accounting for 19.07 percent.

The contribution of the processing industry in 2023 was 18.67 percent, rising to 18.98 percent in 2024 and continuing to increase to 19.07 percent in 2025. The growth of the manufacturing industry over the past 3 years has been positive and stable.

Based on the data, in 2023 the manufacturing industry grew by 4.64 percent, in 2024 it was 4.43 percent, and finally, it increased significantly to 5.30 percent in 2025.

The Manufacturing industry has consistently been the largest contributor to economic growth compared to other sectors. In 2023, this sector contributed 0.95 percent to national economic growth, the following year it was 0.90 percent, and continued to increase to 1.07 percent in 2025.

Minister of Industry, Agus Gumiwang Kartasasmita ,emphasized that this achievement demonstrates the strong dominance and contribution of the processing industry to the national economy. "The processing industry is not only the largest contributor but also dominates national economic growth compared to other sectors," the Minister stated in Jakarta on Thursday, 5 February 2026.

The export performance of the Manufacturing Industry is very good. In 2023, it was recorded to grow by 1.73 percent, then surged in 2024 to reach 6.85 percent, and continued to increase in 2025 to 7.03 percent.

On the other hand, imports of goods and services are still declining, down 1.24 percent in 2023, 8.15 percent in 2024, and falling to 4.77 percent in 2025. The increase in exports and decrease in imports are evidence of the strengthening of the national processing industry structure.

"So, based on this BPS data, there has been an increase in exports and a decline in the import trend over the past 3 years, which proves that the strengthening of the national industrial structure has already occurred,"  the Minister of Industry stated.

In 2026, to keep the processing industry growing, the Ministry of Industry will strengthen the integration of small industries into the supply chains of large industries or domestic industries. This is in line with President Prabowo's directive to increase national economic equality.

"As per the President's directive to strengthen small industries, we will increase the integration of small industries into the national industrial supply chain. This is not only to strengthen the independence of domestic industries but also for national economic equality," Agus conveyed.

The Minister of Industry added that the policy direction of empowering small industries into the industrial supply chain is in line with the Asta Cita, particularly those related to strengthening national industries as the engine of economic growth, increasing the added value of domestic resources, creating quality jobs, and strengthening national independence and competitiveness.

"In this context, the manufacturing sector is positioned as the main driver of economic transformation toward a more productive and sustainable economic structure," he added.

Thus, based on the contribution of the manufacturing industry to national GDP, based on its contribution to economic growth and export-import performance, it can be said that the manufacturing industry is not experiencing deindustrialization, let alone premature deindustrialization.