Minister Of Industry Happy, Manufacturing Industry Grows Exceeds Economic Growth In The Third Quarter Of 2025

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: ANTARA)

JAKARTA - The Ministry of Industry (Kemenperin) reported that the non-oil and gas or manufacturing processing industry grew 5.58 percent in the third quarter of 2025.

This figure exceeds the national economic growth which was recorded at 5.04 percent in the same period.

"With this achievement, the manufacturing sector is the highest source of growth for the economy, which is 1.04 percent, affirming the strategic role of the manufacturing sector as the driver of the national economy," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a written statement, Thursday, November 6.

According to Agus, this growth is supported by government policies in increasing production efficiency, expanding markets and strengthening competitiveness.

This is reflected in data on demand for the manufacturing sector in the third quarter of 2025. The growth of the manufacturing sector is supported by exports and investments.

Non-oil and gas exports grew 12.56 percent on an annual basis and accounted for more than 85 percent of total national exports as of September 2025.

"The five national export mainstay commodities with the highest growth are animal/vegetable fats and oils; steel; machinery and electrical equipment; jewelry and gems; as well as vehicles and parts. Grow 50.34 percent each; 15.88 percent; 17.55 percent; 82.43 percent; and 8.12 percent, "he said.

The former Minister of Social Affairs claimed that manufactured products were the backbone of Indonesia's exports.

This shows that the competitiveness of the national industry continues to increase, as well as supports the trade balance surplus.

In terms of investment, Agus said, the manufacturing sector recorded a realization of IDR 562.7 trillion during January-September 2025. This value consists of Domestic Investment (PMDN) of IDR 178.9 trillion and Foreign Investment (PMA) of IDR 383.8 trillion.

The sector's contribution reached 37.73 percent of the total national investment.

"This figure proves that the investment climate for the manufacturing sector is still very attractive to foreign and domestic investors," said Agus.

Agus added that the processing industry is also one of the sectors with the largest employment.

By 2025, the number of workers in the sector will reach 20.31 million people or 13.86 percent of the total national workforce.

As for August 2025, the sector added around 210,000 new jobs.

"The absorption of labor in the manufacturing sector directly contributes to improving people's welfare. In fact, some companies are able to recruit workers who were previously laid off from other sectors," he explained.

Meski begitu, Agus tak menampik utilisasi kapasitas produksi manufaktur masih berada di level 59,28 persen.

Dia menilai, kondisi tersebut menunjukkan ruang ekspansi masih terbuka lebar.

"Masih terbuka ruang untuk meningkatkan utilisasi produksi melalui peningkatan permintaan produk domestik maupun ekspor serta peningkatan efisiensi produksi," pungkas Agus.

Even so, Agus did not deny that the utilization of manufacturing production capacity was still at the level of 59.28 percent.

He considered that this condition showed that the expansion space was still wide open.

"It is still open to space to increase production utilization through increasing demand for domestic and export products as well as increasing production efficiency," Agus concluded.