Antara News·Indonesia·Thursday, October 8, 2026 at 07:43 AM UTC

Indonesia aims to boost manufacturing GDP share past 20 percent

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Ahmad Muzdaffar, Raka Adji

Jakarta (ANTARA) - Indonesian Industry Minister Muhammad Sarmuji aims to boost manufacturing's contribution to gross domestic product (GDP) to between 20 and 25 percent to drive national economic growth.

The statement came ahead of the two-year mark of the Prabowo Subianto–Gibran Rakabuming Raka administration on Oct. 20.

Speaking in Jakarta on Thursday, Sarmuji said the industrial sector must outpace overall economic growth, given its role as a key economic driver.

"The industrial sector should not lag behind or merely keep pace with our economic growth. We are actively looking for ways, truly looking for ways, to get this sector growing even faster," Sarmuji said.

He noted that industry currently contributes around 19 percent to GDP, with the government aiming to gradually raise that share past 20 percent toward a broader target of 21 to 25 percent.

The minister emphasized that raising this contribution is essential to ensure manufacturing continues driving national economic growth.

"We must not let our industry fade before reaching its peak. It's true that in developed countries, industry slows down and may decline," he said.

This occurs because mature economies shift focus, not because the sector itself is inherently weak, Sarmuji explained.

He noted that setting contribution targets requires evaluating the overall state of domestic manufacturing.

He stressed that the government plays a vital role in creating a supportive ecosystem that enables business players to run and expand operations.

Manufacturing growth has remained positive over the past three years, expanding 4.64 percent in 2023 and 4.43 percent in 2024, before climbing to 5.30 percent in 2025.

According to Statistics Indonesia (BPS), manufacturing was the largest single contributor to national GDP in 2025, accounting for 19.07 percent.

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