Indonesia's Manufacturing Sector Achieves Global Prominence

Significant Growth in Manufacturing Value Added

Indonesia's manufacturing sector has achieved a significant milestone, with its Manufacturing Value Added (MVA) reaching $265.07 billion in 2024, according to World Bank data ¹

. This positions Indonesia as the 13th largest manufacturing nation globally, far exceeding the global average MVA of $78.73 billion. Minister of Industry Agus Gumiwang Kartasasmita highlighted that this achievement demonstrates Indonesia's growing prominence in global manufacturing.

Investment Targets and Strategies

The Ministry of Industry is targeting a significant increase in manufacturing investment through various initiatives. Agus Gumiwang stated that the ministry aims to double manufacturing investment within the next five years through programs like the Increased Use of Domestic Products (P3DN) and Domestic Component Level (TKDN) policies ²

. The ministry is collaborating with state-owned enterprises (BUMN) and regional government-owned enterprises (BUMD) to promote the use of local products.

Recent Investment Performance

The manufacturing sector, or Non-Oil and Gas Processing Industry (IPNM), demonstrated strong investment attraction in Q3 2025, securing Rp 185.4 trillion in investments. This figure represents 37.73% of the total national investment of Rp 491.4 trillion during the same period ²

. The significant investment inflow indicates growing confidence in Indonesia's manufacturing capabilities and the effectiveness of government policies.

Future Outlook

The combination of strong current performance and ambitious growth targets positions Indonesia's manufacturing sector for continued expansion. The government's focus on promoting domestic production and increasing local content in various industries is expected to drive further investment and growth in the sector.