Indonesia's Manufacturing Industry is getting more expansive

10 February 2022 18:36

JAKARTA - The expansion of the manufacturing sector continues to increase. This can be seen in several manufacturing sector performances that are getting better, such as GDP, investment realization, export achievements, labor absorption and the Manufacturing Purchasing Manager's Index (PMI).

The contribution of the manufacturing industry sector to Gross Domestic Product (GDP) shows an increase from year to year. Since 2010, the industrial sector has continued to provide the largest contribution to national GDP, even at the peak of the pandemic in 2020-2021. In 2021, the industrial sector recorded a GDP of Rp2,946.9 trillion, an increase from 2020 which reached Rp2,760.43 trillion.

"In 2020, the contribution of the industrial sector in Indonesia, which reached 19.8%, also exceeded the world average of 16.5%," said Industry Ministry Spokesman Febri Hendri Antoni Arif in Jakarta, Thursday (10/2).

Throughout 2021, investment in the manufacturing sector reached IDR 325.4 trillion. This figure exceeds the manufacturing investment achievement target projected by the Ministry of Industry of IDR 280 trillion to IDR 290 trillion, and an increase of 19% from 2020 (Rp 272.9 trillion). As a comparison, in 2019, the realization of investment in this sector was Rp. 215.9 Trillion.

On the export side, the manufacturing industry will also make the biggest contribution in 2021. The value of manufacturing exports in that period reached USD177.10 billion, accounting for 76.49% of total national exports. (LM)

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