GDP from manufacturing sector Indonesia 2014-2023

In 2023, preliminary figures showed the GDP from manufacturing activities in Indonesia was at about 3.9 quadrillion Indonesian rupiah. Over the last decade, the manufacturing sector has been the largest contributor to Indonesia's GDP and has become a significant source of investment and job creation.

Manufacturing workers in Indonesia

Over 19 million people were working in the manufacturing industry in Indonesia, and more than 14 percent of Indonesian workers were employed in the non-oil and gas manufacturing industry. However, the average net wage of manufacturing workers is still relatively low compared to other sectors. Riau Islands had the highest average salary for manufacturing workers in Indonesia. The number of people employed in the manufacturing sector is expected to increase, corresponding with the increasing number of manufacturing establishments in Indonesia.

Improvements in manufacturing sector in Indonesia

Most manufacturing companies in Indonesia are concentrated on the island of Java, where the current capital city, Jakarta, lies and where most of its population resides. Recently, the Indonesian government has started to shift its focus on developing its other islands. In December 2021, the Indonesian government launched Digital Industry Center 4.0 (PIDI 4.0) to boost the industrial sector's growth and implement better local policies toward the manufacturing industry. These actions should include improvements in connectivity and simplifying licenses and permits for investors all over the archipelago. The Indonesian government aims to develop the country into the top ten largest economies globally by 2030.