Indonesia's Manufacturing Sector Maintains Strong Growth Momentum

Outperforming National Economy

Indonesia's manufacturing sector continued its robust performance in Q3 2025, growing by 5.58% year-over-year (YoY), surpassing the national economic growth of 5.04% YoY. This growth pattern was consistent with the previous quarter when manufacturing grew by 5.60% YoY against a 5.12% YoY national growth. The consistent outperformance demonstrates the sector's resilience and its critical role in driving national economic stability.

Increasing Contribution to GDP

The manufacturing sector's contribution to Indonesia's Gross Domestic Product (GDP) reached 17.39% in Q3 2025, marking an increase from 16.92% in the previous quarter. This represents a 0.47% increase in the sector's share of national GDP, solidifying its position as the largest contributor to the country's economic output. The sector's growth was highlighted by Minister of Industry Agus Gumiwang Kartasasmita as a positive indicator of Indonesia's industrial competitiveness in both domestic and international markets.

Driving Economic Growth

The manufacturing sector played a crucial role in Indonesia's economic growth during Q3 2025, contributing 1.13% to the overall economic expansion. This significant contribution underscores the sector's importance as a growth engine for the national economy. The industry's strong performance is attributed to its ability to create substantial value-added output, absorb significant employment, and strengthen the overall economic structure.

Implications for National Economy

The robust growth of the manufacturing sector has positive implications for Indonesia's economic prospects. It suggests a strong foundation for future economic growth and indicates the effectiveness of industrial policies implemented by the government. The sector's performance also reflects positively on Indonesia's export competitiveness and domestic market dynamics.