Indonesia's Manufacturing Sector Demonstrates Resilience Through Investment and Exports

Significant Investment Inflows

Indonesia's manufacturing sector has shown robust performance in Q3 2025, attracting substantial investment and maintaining its crucial role in national employment. The sector drew Rp 185.4 trillion in investment, representing 37.73% of total national investment during the quarter ²

. This significant capital inflow underscores the sector's importance as an economic driver and highlights Indonesia's appeal to investors in the manufacturing space.

Employment and Economic Contribution

The manufacturing industry played a vital role in supporting national employment, with 20.31 million jobs as of August 2025. This represents approximately 13% of total national employment, demonstrating the sector's capacity to absorb significant workforce numbers ²

. The industry's contribution to employment stability is particularly noteworthy in the current economic landscape.

Export Performance

In terms of export performance, Indonesia's manufacturing sector recorded US$ 102 billion in exports during the first half of 2025 ¹

. While this figure represents a significant contribution to the country's export earnings, it remains lower compared to regional competitors such as Malaysia, Vietnam, and Thailand. According to UNIDO's Industrial Statistics Database for 2025, this comparative performance suggests potential areas for improvement in Indonesia's manufacturing export strategy.

Sector Growth and Future Prospects

The manufacturing sector demonstrated positive growth momentum, with an 5.58% increase recorded in Q3 2025 ²

. This growth was supported by both domestic investment and export performance. The sector's export value reached US$ 60.25 billion in Q3 2025, accounting for 81% of total national exports ²

Source 2

https://finance.detik.com/industri/d-8218638/ekspor-manufaktur-ri-tembus-us-102-miliar

. These figures highlight the sector's critical role in Indonesia's international trade and economic stability.

Challenges and Opportunities

While the manufacturing sector shows promising growth, the comparative analysis with regional peers suggests areas for improvement. The lower export value compared to neighboring countries indicates potential opportunities for enhancement in export strategies and competitiveness. The government and industry stakeholders may need to focus on factors such as production capacity, technological upgrades, and trade facilitation to improve the sector's global standing.