Business · Economy · 13 hrs ago

Indonesia’s Industry Minister Says Manufacturing Is Expanding

Indonesia’s Industry Minister Says Manufacturing Is Expanding

Industry Minister Muhammad Sarmuji says Indonesia is not undergoing deindustrialization and that manufacturing is expanding.

He cited non-oil and gas manufacturing growth of 5.32% in 2026, above national economic growth of 5.29%.

He also said manufacturing grew 5.3% in 2025, compared with 5.11% growth for the economy.

The sector employed 19.98 million people by May 2026, and its exports made up 82.40% of Indonesia’s exports through August.

Sarmuji said the large domestic market also supports industry, absorbing most of the country’s manufactured products.

But factories were using only 66.13% of their production capacity in February, and the government wants to lift that to 80–85%.

The government also wants processing of raw materials to lead to finished goods, stronger local suppliers and more value added in Indonesia.

2 sources

Related

What people are saying

Muhammad SarmujiIndustry Minister
Our manufacturing industry is not contracting, but is actually expanding.
via CNN Indonesia
The actual data shows something different.
via CNBC Indonesia
Downstream processing of our natural resources is the starting point for industrialisation.
via CNBC Indonesia