Antara News·Indonesia·Monday, August 31, 2026 at 12:11 PM

Indonesia sets eight industrial priorities for 2027

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Ahmad Muzdaffar F, Martha Herlinawati Simanjuntak

Jakarta (ANTARA) - Indonesia’s Industry Ministry has set eight key programs for 2027 to strengthen the manufacturing sector, boost productivity and competitiveness, and maintain momentum in industrial growth, Industry Minister Agus Gumiwang Kartasasmita said Monday.

The programs are aimed at strengthening the industrial structure, increasing value added, expanding markets, and driving industrial transformation, Agus said at a working meeting with House of Representatives Commission VII in Jakarta.

“The Industry Ministry has set several key programs for 2027, which are essentially focused on strengthening the foundation of the national industrial sector,” Agus said.

The programs align with the direction of development under the government’s 2027 Draft Government Work Plan, which targets economic growth of 5.8 percent and manufacturing growth of 5.86 percent.

The plan also targets the manufacturing sector contributing 21.5 percent to gross domestic product, Agus said.

The eight programs include developing an industrial workforce, strengthening small and medium industries as part of supply chains, and advancing natural resource-based downstream processing and priority industries.

The ministry will also seek to boost industrial productivity through innovation and technology, increase the use of domestically made products, develop the halal industry, accelerate exports of industrial services, and promote green industry.

Another priority is industrial agglomeration through industrial estates, the ministry said.

“These eight programs are instruments to ensure that the agendas of strengthening the domestic market, increasing productivity, downstream processing, industrial transformation, and expanding markets, as directed in the 2027 Government Work Plan, can continue,” Agus said.

The ministry, however, faces budget constraints in implementing the industrial development agenda. Its 2027 budget ceiling is Rp2.01 trillion, down Rp488.16 billion, or 19.51 percent, from its initial 2026 allocation.

The ministry has therefore proposed an additional Rp1.72 trillion to strengthen implementation of priority industrial programs focused on productivity, competitiveness, downstream processing, small and medium industries, industrial workforce development, and national industrial transformation.

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