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Indonesia in Top 10 Global Manufacturing Countries, Says Industry Minister

22 December 2023 13:38 WIB

Menteri Perindustrian Agus Gumiwang Kartasasmita pada forum bisnis Rakornas Himpunan Kawasan Industri (HKI) ke-23 di Bali, Kamis (21 September 2023). ANTARA/HO-Kementerian Perindustrian.

TEMPO.CO, JakartaIndonesian Industry Minister Agus Gumiwang Kartasasmita reported on the country’s achievements in the manufacturing sector, which has enabled it to be listed among the top ten manufacturing countries in the world. He also said that Indonesia is currently playing the role of the manufacturing powerhouse in ASEAN.

“This is a level-up as we are in the top ten rankings,” Agus said in a written statement received here on Thursday, Dec. 21. 

He referred to the latest publication by US-based workforce management technology company, Safeguard Global, which ranked Indonesia among the top 10 manufacturing countries in the world, accounting for 1.4 percent of global manufacturing output.

Agus said this had a positive impact on the transport, energy, agriculture, plantation, and maritime sectors, which are sources of raw materials and production inputs for the manufacturing sector.

This achievement was further strengthened by the industrial output which continued to grow over the past three years. In 2020, the value was recorded at US$210.4 billion, rising to US$228.32 billion in 2021 and again to US$241.87 billion in 2022. By September 2023, the value reached around US$192.54 billion or Rp2.9 trillion.

The competitiveness of Indonesia's industrial sector was also supported by rising investment, both domestic and foreign investment. From January to September 2023, the investment value in the manufacturing industry sector amounted to Rp413 trillion.

On the other hand, the manufacturing sector not only has an impact on domestic economic growth but also on the export market. From January to November 2023, the export value stood at US$171.23 billion or Rp2.6 trillion.

In terms of labor absorption, the National Labor Force Survey (Sakernas) in August 2023 showed that there were 19.29 million workers in the non-oil and gas processing industry sector, proving the sector's contribution to the country's economic resilience.

Despite the global economic uncertainty, Indonesia's manufacturing Purchasing Manager's Index (PMI) has remained at expansion levels for 27 consecutive months. “To date, only two countries in the world, India and Indonesia, are in this position,” Agus Gumiwang concluded.

ADINDA JASMINE PRASETYO

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