Prabowo Targets The Processing Industry To Grow 5.5 Percent By 2025, This Is The Motivater Factor

ILLUSTRATION BETWEEN

JAKARTA - The non-oil and gas processing industry is considered to be still the driving force of the national economy. For this reason, the government continues to strive so that the sector is able to make a higher contribution to the Indonesian economy.

President Prabowo Subianto also targets the manufacturing sector to grow by 5.5 percent by 2025.

This is stated in Presidential Regulation (Perpres) Number 79 of 2025 concerning the Update of the 2025 Government Work Plan (RKP) which was signed on June 30, 2025.

"With this growth, the contribution of gross domestic product to the gross domestic product is projected to continue to increase according to medium and long-term trajectory, reaching 20.8 percent in 2025," the regulation reads, quoted on Saturday, September 20.

In the regulation, it is explained that there are several driving factors that can achieve this target.

Among them, several investment projects that are expected to enter the operational stage in 2025, such as petrochemical investment projects in Banten, electric vehicle battery cell factories in West Java as well as copper downstream projects in East Java and West Nusa Tenggara.

Then, the increase in demand for consumer goods in several trading partners, especially in developing countries such as India and Middle Eastern countries and Asia Pacific. Next, domestic demand is expected to be maintained in line with controlled inflation rates;

Then, the sustainability of the construction of the Nusantara Capital City (IKN) project will encourage the demand for domestic iron.

"As well as increasing the independence of the pharmaceutical and medical device industry which is driven by the need to support an increase in health efforts, disease control, and increasing access to health services in realizing the scope of the health of the universe," explained the regulation.

Previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the manufacturing sector or non-oil and gas processing industry grew positively by 5.60 percent until the first semester of 2025.

Agus said that this achievement was better than the national economic growth of 5.12 percent.

The sector also contributed 16.92 percent to Gross Domestic Product (GDP). Then, Indonesia's manufacturing product exports contributed 80 percent of the total national export.

"January to July 2025 exports from national manufacturing products amounted to 80 percent. So, 80 percent of national exports came from manufactured products. And also investments entered Indonesia, both PMA and PMDN were 38.9 percent entered the manufacturing sector or Rp366.6 trillion," Agus said at the Green Initiative Conference (GIC) event at the Borobudur Hotel, Jakarta, Thursday, September 18.

Agus said that until February 2025, the number of labor absorption in the manufacturing sector reached 19.6 million people or around 13.45 percent of the total national workforce.