Manufacturing Grows 5.58 Percent, Minister of Industry: First Time in the Last 14 Years Surpasses National Economic Growth

JAKARTA - The growth of the non-oil and gas processing industry (IPNM) or manufacturing is said to have reached 5.58 percent on an annual or year on year (yoy) basis throughout the third quarter of 2025. This figure also exceeds the national economic growth of 5.04 percent in 2025.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita claimed that the growth of the manufacturing industry surpassed the national economic growth for the first time in the last 14 years.

This was conveyed by Agus in a Working Meeting with Commission VII of the DPR at the Parliament Complex, Senayan, Jakarta, Monday, January 26.

"We can consider the performance of manufacturing in 2025 to be quite good, where the growth of the non-oil and gas processing industry has been recorded to exceed the national economic growth since the second and third quarters of 2025, and this is the first time in the 14 years of the history of the Republic, the last 14 years," said Agus.

According to Agus, the growth of the manufacturing industry should be above the national economic growth. The reason is, he wants the manufacturing industry to attract economic growth.

"Which in the end, manufacturing growth can be above national economic growth and this is indeed what it should be. This is always what we strive for, not the other way around. We always strive for manufacturing growth to attract economic growth, not the other way around, economic growth attracts manufacturing growth," he said.

Agus also hopes that the results of the release from the Central Statistics Agency (BPS) in the future can show that the growth of IPNM until the fourth quarter of 2025 will still exceed the national economic growth.

"In the third quarter of 2025, IPNM growth reached 5.58 (percent) yoy, this is higher than the national economic growth of 5.04 (percent), and in the fourth quarter (2025) hopefully we are waiting for data or releases from BPS, IPNM growth is still above the national economic growth," said Agus.

In addition, said Agus, the manufacturing industry also contributed 17.39 percent to the Gross Domestic Product (GDP) until the third quarter of 2025.

"IPNM's contribution to the national GDP remains maintained at a fairly high level. In the third quarter of 2025, IPNM's contribution was recorded at 17.39 percent or IDR 1,053.56 trillion, based on prevailing prices. Meanwhile, based on constant prices, IPNM's contribution is in the range of 18.70 percent or IDR 644.17 trillion," he explained.

The brilliant performance of the manufacturing industry in 2025 is also supported by exports. It is recorded that as of November 2025, IPNM exports reached 205.93 billion US dollars or 80.27 percent of the total national exports.

"The IPNM trade balance recorded a surplus of 35.95 billion US dollars and this reflects the strengthening of the competitiveness of our manufacturing products in the global market," said Agus.

The former Minister of Social Affairs also said that the realization of investment in the IPNM sector showed a fairly good achievement in 2025. As of September 2025, investment in the manufacturing industry reached Rp. 552 trillion or about 38.50 percent of the total national investment of Rp. 1,434.3 trillion.

"As for the IPNM workforce until August 2025, it reached 20.26 million or 13.83 percent of the total national workforce of 146.54 million people," explained Agus.

Meanwhile, continued Agus, the utilization of manufacturing until November 2025 was at 61.89 percent. According to him, this figure is still relatively low and should be optimized in the future.

"This is still relatively much that we can do to increase and this shows the still large space for national manufacturing expansion to optimize its production capacity," added Agus.