Spokesperson For The Ministry Of Industry Believes That Indonesia's Manufacturing Should Grow 6 Percent: If Pro-Industry Policies Are Implemented

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) believes that Indonesia's manufacturing growth should be able to grow 6 percent, surpassing the achievement in the second quarter of 2025 which reached 5.68 percent on an annual basis.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arief said 6 percent growth could not be achieved without conditions.

These conditions, he said, are more industry-friendly policies. For example, import control policies, the ease of obtaining raw materials for industry and entry points policies or restrictions on imported goods.

"We are optimistic that the growth and contribution of the manufacturing industry can still be even higher if the pro-industrial policy is implemented," said Febri in his official statement, Wednesday, August 6.

As for the entry point policy, Febri explained, the policy can be carried out by limiting imported goods and directed to be sent to certain ports only.

"Especially if the pro-industrial policy is implemented, of course, manufacturing growth will accelerate even higher," he said.

Regarding industry growth data that exceeded economic growth when PMI manufacturing and IKI in July were in the contraction zone, Febri emphasized that the data disclosed by the government was in accordance with manufacturing performance.

"The brilliant performance of the industrial sector in the second quarter of 2025 is in accordance with a number of data and valid indicators, such as reports from the Industrial Trust Index (IKI) and the Prompt Manufacturing Index-Bank Indonesia (PMI BI) as well as investment and export achievements in the industrial sector," said Febri.

"This is validated through the results of the IKI Kemenperin and PMI BI (Bank Indonesia) which states that the manufacturing industry during the second quarter of 2025 is always above level 50 or is in an expansive phase," he added.

Other indicators also support the manufacturing sector to grow again, such as non-oil and gas exports which are also expansionary, imports of capital goods used for investment according to the BPS report.

"The non-oil and gas processing industry contributed to the national GDP and also increased from 16.72 percent in the second quarter of 2024 to 16.92 percent in the second quarter of 2025. The positive achievement was also in line with IKI in July 2025 of 52.89, up 1.05 points compared to the previous month which was 51.84," he explained.

"This shows the resilience of the manufacturing industry sector in the face of global pressure and proves its vital role as a driving force for the national economy," he continued.

Previously, the manufacturing sector recorded growth reaching 5.68 percent on an annual basis or year on year (yoy) in the second quarter of 2025. This achievement exceeded the national economic growth which was recorded at 5.12 percent.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita assessed that this shows that the manufacturing sector remains the main backbone and motor of Indonesia's economic growth.

According to him, the growth of the processing industry has increased significantly compared to the previous period.

"If we compare it, the growth in the second quarter of 2025 is much higher than the first quarter of 2025 of 4.55 percent. In fact, it is much higher than the second quarter of last year of 3.95 percent," Agus said as quoted from his written statement, Wednesday, August 6.

Agus stated that the positive performance of the manufacturing sector was driven by increased demand, both from within the country and the export market. Some sub-sectors even recorded very high growth.

"The basic metal industry grew by 14.91 percent, driven by increased foreign demand, especially for iron and steel products," he said.

Then, the traditional chemical, pharmaceutical and drug industry also showed solid performance with a growth of 9.39 percent. This growth is in line with the increasing domestic demand for health products as well as the export of chemicals and chemicals.

Then, the food and beverage industry as one of the mainstays of the manufacturing sector also recorded growth of 6.15 percent. This growth is supported by high demand for products such as CPO, cooking oil, beverages and processed foods, both in the domestic and foreign markets.