JAKARTA - The Minister of Industry (Menperin) denied the occurrence of deindustrialization in Indonesia. Agus claimed that the manufacturing industry was still the main driver (prime mover) in spurring national economic growth.
Agus also offered Manufacturing Value Added (MVA) data and the manufacturing industry's contribution to Gross Domestic Product (GDP).
Based on data from the World Bank and the United Nations Statistics, Agus said, the value of Indonesia's MVA throughout 2023 reached 255.96 billion US dollars. He considered, this is the highest achievement that Indonesia has previously achieved.
The MVA value places Indonesia in the top 12 world manufacturing countries and the fifth largest in Asia. Meanwhile in Southeast Asia (ASEAN), the value of Indonesia's MVA is certainly the highest, including compared to Thailand and Vietnam.
According to Agus, Indonesia's MVA trend has continued to increase since 2019, except during the COVID-19 pandemic.
He also claimed that Indonesia is equivalent to several developed industrial countries, such as Britain, Russia, and France.
"The world average of the MVA is 78.73 billion US dollars, while Indonesia recorded a historical average of 102.85 billion US dollars. This achievement reflects the strong national manufacturing industry structure from upstream to downstream," Agus said in a written statement, quoted Thursday, May 8.
Then, Agus referred to data from the Central Statistics Agency (BPS).
The non-oil and gas processing sector has increased in its contribution to the national economy, which is reflected in the performance of the first quarter of 2025 of 17.50 percent.
This achievement increased compared to the same period the previous year, which was 17.47 percent and higher than the contribution throughout 2024 which was at 17.16 percent.
Likewise, compared to the second quarter of 2022 or after COVID-19 hit Indonesia, the economic contribution of the non-oil and gas processing industry (IPNM) has an increasing trend until the first quarter of 2025.
"Based on our technocratic analysis of the GDP data for the non-oil and gas processing industry per quarter, it was found that there was an increasing trend in the statistically significant IPNM GDP share," he said.
According to Agus, economists and observers need to take a closer look at IPNM's GDP or manufacturing GDP data in the second quarter of 2022 since the COVID-19 pandemic stopped hitting Indonesia until the first quarter of 2025.
"So, it should be questioned why observers say that Indonesia is entering or has entered the deindustrialization stage, that is wrong. Because we can see from the existing data, the performance of the manufacturing industry is still a source of economic growth," said Agus.
The Minister of Industry then emphasized the importance of strategic policies, pro-businesses and pro-investments to encourage national industrial competitiveness.
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Agus said, Indonesia has great potential to continue to expand its global market share.
Especially through the increase in exports of downstream products with high added value.
Including the food and beverage industry, textiles, metals, automotives and electronics sectors. Agus is also optimistic that the manufacturing industry sector will continue to be the motor of national economic growth.
"Of the two factors alone, namely Manufacturing Value Added (MVA) and sharing with GDP, we have not yet talked about the performance of investment and export achievements as well as the absorption of manufacturing labor, it is very easy to break that Indonesia is not in the industrialization phase," he concluded.
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