Indonesia has marked its position as a top ten global manufacturing contributor, according to safeguardglobal.com, with a 1.4% share in global manufacturing products, highlighting the country’s significant economic advancement.
Indonesia’s ascension to the top ten manufacturing countries globally represents a significant leap from its 16th position four years ago, indicating robust growth and a major influence in the ASEAN region’s manufacturing sector.
Indonesia’s contribution of 1.4% to the global manufacturing products signifies its rising prominence in the sector, showcasing a substantial climb from its previous 16th rank.
This progress indicates the manufacturing sector’s multiplier effect on other sectors, such as transportation, energy, agriculture, and fisheries, which are integral to manufacturing.
The manufacturing sector’s output value has consistently increased from USD 210.4 billion in 2020 to approximately USD 192.54 billion by September 2023, reflecting steady growth.
The sector has seen a surge in both domestic and foreign investments, reaching Rp 413 trillion by September 2023, and a dominant role in Indonesia’s total exports, highlighting its global competitiveness.
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Employment in the manufacturing sector has grown from 17.49 million during the Covid-19 pandemic to 19.29 million in 2023, contributing significantly to the national economy.
Indonesia’s manufacturing sector, resilient in a fluctuating global economy, maintains a stable condition, with the Purchasing Manager’s Index (PMI) consistently in the expansion zone for 27 consecutive months. The government’s focused policies and programs in industrialization and digital technology are set to further enhance the sector’s productivity and global competitiveness.
Indonesia has emerged as a top ten global manufacturing country, with a significant contribution to the global manufacturing output. The sector’s growth, backed by increased investments and exports, has enhanced Indonesia’s economic stature and provided considerable employment opportunities, reflecting the country’s successful industrial policies and global market integration.
Source: Batam Today, Kemenperin (2023)
