Investment Realization Of Chemical, Pharmaceutical And Textile Industry Sector Reaches IDR 142.15 Trillion

The Ministry of Industry (Kemenperin) noted that the realization of investment in the Chemical, Pharmaceutical and Textile Industry (IKFT) sector reached more than IDR 140 trillion as of September 2025.

"The realization of investment in the IKFT sector in the period January to September 2025 reached IDR 142.15 trillion, a significant increase from IDR 116.54 trillion in the same period the previous year," said IKFT Director General Taufiek Bawazier in a written statement, Saturday, November 29.

In terms of employment, the IKFT sector also absorbed 6.7 million workers until February 2025 or around 4.6 percent of the total national workforce.

In aggregated terms, the IKFT industrial capacity utilization is in the range of 60 percent, also driven by downstreaming policies, especially in the oil and gas-based chemical industry and non-metal excavation materials.

In terms of foreign trade, Taufiek explained, exports of IKFT in the January-August 2025 period reached 35.25 billion US dollars. Meanwhile, imports were at 32.31 billion US dollars.

"Chemical products, finished clothing and leather and footwear are the main pillars of exports, while high imports of chemicals show the need to strengthen the structure of the domestic upstream industry," he said.

The IKFT sector was able to grow by 5.92 percent until the third quarter of 2025 and contributed 3.88 percent. to the national GDP. This figure exceeds the growth of the non-oil and gas processing industry which grew by 5.58 percent.

Even so, said Taufiek, the IKFT sector is also faced with a number of structural challenges, such as high imports of chemical raw materials, dependence on Active Pharmaceutical Inngredients (API), the entry of cheap textile products that suppress domestic industries and the potential for rerouting glass products from other countries.

"The government considers that these challenges need to be responded to through a comprehensive strategy that includes strengthening regulations, improving product quality, harmonizing standards and expanding market access," he explained.

The government affirms its commitment to comprehensively strengthen the national industrial structure in supporting the economic transformation target as stated in the 2025-2045 RPJPN. This effort includes increasing the contribution of the processing industry to GDP to 21.9 percent and accelerating the national economic growth rate towards 8 percent in 2029.

In this context, the IKFT sector is directed to become a driving force through increasing domestic consumption, optimizing investment, accelerating exports and strengthening import substitution.

"Our key is to strengthen the industrial structure from upstream to downstream. Starting from the independence of raw materials, modernizing machines to accelerating digital transformation and the circular economy," concluded Taufiek.