Ministry of Industry Targets Manufacturing Industry to Grow 5.51 Percent Next Year

JAKARTA - The Ministry of Industry (Kemenperin) targets that the growth of the non-oil and gas processing industry (IPNM) or manufacturing industry will reach 5.51 percent next year.

Deputy Minister of Industry (Wamenperin) Faisol Riza said that this figure was higher than the achievement of the manufacturing industry until the third quarter of 2025 which reached 5.17 percent.

"The target for the growth of the non-oil and gas processing industry's GDP in the third quarter of 2025 is around 5.17 percent, targeted at 5.51 percent," said Faisol in a press conference on the Performance of the Manufacturing Industry in 2025 and the Outlook for the Manufacturing Industry in 2026 at his office, Wednesday, December 31.

Faisol explained that the growth of manufacturing was supported by the growth of a number of industrial subsectors.

Such as, the metal industry is targeted to grow 14 percent in 2026, the chemical, pharmaceutical and medicine industry is pegged to grow 5.26 percent, the food and beverage industry grows 6.06 percent and the leather, leather goods and footwear industry grows 5.19 percent.

He is also optimistic that the manufacturing industry can become the main foundation for national economic growth. This is because the manufacturing products themselves can be absorbed by the domestic market.

At least 78.39 percent of national manufactured products are absorbed by the domestic market.

"The national manufacturing industry absorbs almost 80 percent of its products domestically," he said.

Throughout 2025, the Ministry of Industry recorded a fairly good performance of the industrial sector.

This is reflected in the growth of IPNM in the third quarter of 2025 of 5.17 percent, higher than the economic growth of 5.01 percent.

IPNM's contribution to the National GDP was recorded at 17.27 percent.

The contribution of IPNM investment to the total national investment was recorded at 38.49 percent with a value of Rp552 trillion.

Then, the contribution of IPNM labor was 13.83 percent or 20.26 million people.

The export of IPNM is also projected to continue to grow to reach US$ 232.61 billion by the end of 2025.