Minister Of Industry Reveals The Challenges Of Manufacturing Industry For One Year Prabowo-Gibran's Government

JAKARTA - The Indonesian manufacturing industry was able to grow by 4.94 percent during the one year Prabowo Subianto-Gibran Rakabuming Raka administration. Even so, the manufacturing industry is inseparable from a number of challenges faced.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said there were a number of challenges faced by the manufacturing industry in the past year.

"If we look at it in the past year, the dynamics of world trade has changed significantly, triggered by tariff policies and trade wars between America and China. Of course this will have an impact on the global supply chain," Agus said at a press conference at the Ministry of Industry office, Jakarta, Monday, October 20.

"There is also tension in the Middle East between Israel and Iran. Alhamdulillah, the tension has ended quite quickly, so it's not too long," he continued.

In addition, Agus said, the conflict between Israel and Palestine is also a challenge for the Indonesian manufacturing industry. This is because these tensions trigger an increase in energy prices and also logistics costs.

"These students will all bring potential to increase production costs which will certainly affect the competitiveness of domestic industrial products," he said.

Meanwhile, Agus continued, there are still relatively few national manufacturing products protection instruments or domestic non-taiff measures (NTM). As of October 2025, Indonesia only has 207 NTM.

This number is the lowest when compared to neighboring countries.

"Indonesia's NTM as of October 2025 is only 207 NTM, far less than China which is 1,569 NTM, United States 4,597 NTM, India 740 NTM, Thailand 661 NTM," explained Agus.

According to Agus, if the problem is not handled seriously, the domestic market will be flooded with imported goods which will ultimately affect the national manufacturing industry.

"And we are worried that if this is not handled better, if this is not handled seriously, it will certainly result in an increase in imported goods, which in turn will affect the performance of the manufacturing industry sector," he concluded.