Indonesia Enters Top 12 Global Manufacturing Nations:A Milestone in National Industrialization

Indonesia has reached a significant milestone in its industrial development. According to data from The Global Economy and the World Bank, Indonesia officially entered the list of the world’s top 12 manufacturing nations in 2023. This achievement was driven by a record-breaking Manufacturing Value Added (MVA) of USD 255.96 billion, the highest in the country’s history.

This represents a sharp increase of 36.4% compared to USD 241.87 billion in 2022. Minister of Industry Agus Gumiwang Kartasasmita described the achievement as a major indicator of the success of Indonesia’s industrialization policy centered on downstream processing and technological innovation.

“Indonesia’s MVA far exceeds that of other ASEAN countries, such as Thailand (ranked 22nd with USD 128 billion) and Vietnam (ranked 24th with USD 102 billion),” stated the Minister on Monday (May 5, 2025).

Integrated Industrial Structure

The success is largely attributed to Indonesia’s strong and integrated industrial structure that spans upstream to downstream sectors. This enables the creation of high value added, enhances industrial competitiveness, and opens up greater export opportunities.

Despite the challenges posed by the pandemic, Indonesia’s MVA has been on a consistent upward trend since 2019. The Minister emphasized that this growth is supported by key strategic policies, including infrastructure development, protection of the domestic market, and the adoption of industrial technology under the Making Indonesia 4.0 initiative.

Manufacturing as the Backbone of the Economy

Beyond reaching the highest MVA in its history, Indonesia’s manufacturing sector plays a critical role in the national economy. In 2023, the sector contributed 18.67% to the country’s Gross Domestic Product (GDP), making it the largest contributor among all sectors.

For comparison, the global average MVA across 153 countries is USD 78.73 billion, while Indonesia’s historical average from 1983 to 2023 is USD 102.85 billion. The lowest point was recorded in 1983 at USD 10.88 billion, and the highest in 2023.

Toward a Green and Sustainable Industry

In response to global demands for decarbonization and sustainability, the Ministry of Industry is also focusing on building a low-carbon industrial ecosystem. This includes promoting international partnerships, accelerating production digitalization, energy efficiency, and adopting clean technologies.

The Minister reiterated that Indonesia holds vast potential to become a leading manufacturing powerhouse in Asia and beyond. The government is committed to supporting the export of high value-added downstream products, particularly in sectors such as food and beverages, textiles, metals, automotive, and electronics.

“With a solid industrial base, strong export orientation, and sound policy support, Indonesia is well-positioned to emerge as a global leader in manufacturing,” concluded the Minister.