Minister of Industry Agus Reveals a Series of Challenges to Strengthen National Industry
JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita admitted that strengthening the national industry faces a number of challenges, even though its performance is able to grow beyond the national economic growth.
Agus emphasized the need for vigilance regarding the efficiency and sustainability of the industry.
"In the future, the strengthening of the national industry is faced with structural challenges along the industrial chain. Starting from the input, process to output," said Agus in his remarks at the Inauguration of the Board of Directors of the Industrial Area Association for the Period 2025-2029 in Jakarta, Tuesday, January 20.
Agus highlighted the input side as a determining point that needs immediate improvement. The domestic industry is still struggling with uncertainty in the availability of raw materials, the gap in human resources (HR) competence, and the limitations of regional infrastructure that have not optimally absorbed the flow of incoming capital.
"There are still limitations in the industrial area infrastructure that have not been fully able to absorb industrial investment. This condition certainly has a direct effect on the efficiency and continuation of industrial activities in the country," he said.
Responding to this challenge, the Ministry of Industry (Kemenperin) has also designed a New National Industrialization Strategy (SBIN).
The roadmap includes strengthening the domestic market, import substitution, digitization, and the development of the halal industry as a new growth engine.
In the framework of SBIN, Agus said, industrial areas are no longer seen as mere production locations, but must be transformed into modern ecosystems that accelerate added value and labor absorption.
"Through this approach, Indonesia confirms its commitment to building a sovereign, competitive industry and, no less importantly, a sustainable industry," he said.
Despite facing structural challenges, data shows that the manufacturing sector remains expansive. Until the third quarter of 2025, the value of manufacturing output increased significantly from Rp1,783 trillion (2024) to Rp1,875 trillion (2025).
The increase brought the growth of the industrial sector beyond the national economic growth of 5.01 percent.
The contribution of manufacturing to the national Gross Domestic Product (GDP) remains dominant, namely 17.27 percent or equivalent to Rp3,051.58 trillion.
Investor interest is also maintained. The realization of manufacturing investment reached Rp592 trillion, contributing 38.5 percent of the total national investment.
Another positive indicator is seen from the Industrial Confidence Index (IKI) which was at 51.90 in December 2025.
"The number above 50 means expansion and above 51 indicates that the condition is still healthy," he explained.