Indonesia Sets 2027 Industry Focus on Downstreaming, Green Growth

RRI.CO.ID, Jakarta - Indonesian Industry Minister Agus Gumiwang Kartasasmita said the 2027 industrial development policy will focus on downstreaming, green industry, and expanding exports. The policy also includes developing high‑value‑added industries, increasing productivity, and strengthening the competitiveness of the national industry.

Minister Agus outlined these policy directions while discussing the 2027 Work Plan and Budget for Ministries and Agencies (RKA‑KL) with the House of Representatives’ Commission VII. These priorities align with the 2027 Government Work Plan (RKP).

“In the 2027 RKP, economic growth is targeted at 5.8 percent, while growth in the processing or manufacturing industry is targeted at 5.86 percent--above the economic growth target,” Minister Agus said at the Senayan Parliament Complex in Jakarta on Monday, August 31, 2026.

To achieve these targets, the Ministry is directing its policies toward accelerating downstream processing and developing high‑value‑added industries. The policies also include enhancing the competitiveness of labor‑intensive industries and transitioning toward green industry.

Minister Agus emphasized that this development agenda requires adequate policy support and financing. “This support is needed to ensure that all of these initiatives can be implemented optimally,” he said.

He also highlighted the performance of the non‑oil and gas processing industry (IPNM) in the second quarter of 2026. According to data from the Central Bureau of Statistics (BPS), the IPNM grew 5.32 percent year‑on‑year (yoy), exceeding national economic growth of 5.29 percent (yoy).

The manufacturing sector’s positive performance is reflected in the World Bank’s 2025 Manufacturing Value Added figures. “Indonesia’s Manufacturing Value Added reached USD 275.61 billion,” Minister Agus said.

Indonesia rose to 12th place globally in 2025, up from 13th in 2024. Within ASEAN, Indonesia recorded the highest manufacturing value added.

In terms of capacity, the IPNM utilization rate remains at 64.8 percent. “We still need to increase this figure to at least 70 percent or higher,” said Minister Agus. (Gusti Panji)