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Indonesia Ranks Among the Top 10 Countries in the Manufacturing Sector


Title: Indonesia Ranks Among the Top 10 Countries in the Manufacturing Sector
Indonesia Ranks Among the Top 10 Countries in the Manufacturing Sector

Indonesia's Economic Growth in the Manufacturing Sector


The manufacturing industry is growing swiftly all over the world with the constant advancement of technology and innovation by the manufacturing businesses. The growth in Indonesia itself moves rapidly, resulting in positive impact towards the country's economic growth. Indonesia ranks among the top 10 countries with the highest contribution towards the global output in the manufacturing sector. In early 2023, Indonesia's manufacturing industry experienced an increase in Puchasing Managers' Index (PMI). Although there were slight fluctuations after April, until November 2023, Indonesia managed to keep its PMI above 50 points which shows that the industry sustains in the expansive zone.



Sumber: S&P Global
Source: S&P Global

Numerous factors contribute to the development of the manufacturing industry in Indonesia. In 2023, there was an increase in both domestic and international demand for Indonesian-manufactured products. Additionally, industry players are optimistic about rising sales, driving them to continue innovating and accelerating production. Government support has also played a crucial role in boosting manufacturing production.


The Minister of Industry, Agus Gumilang Kartasasmita, has implemented a couple of efforts to encourage the growth of the manufacturing sector such as facilitating easier access to permits for obtaining raw materials for industrial production and increasing domestic products in the procurement of goods and services.

Menteri Perindustrian (Agus Gumilang Kartasasmita)
Source: Dok. Kemenperin

With contributions from both manufacturing business players and the government, the manufacturing sector contributed 16.77% of the country's economic growth. This collaborative effort propelled the sector to be the largest contributor to Indonesia's economic growth. In Q3 of 2023, Indonesia’s economic growth increased 4,94% (year-on-year) with the sector’s contribution. This growth proves the significant potential of the manufacturing sector in driving the nation's economy. Furthermore, the contributions from the manufacturing industry have positively impacted the increase in employment opportunities and enhanced purchasing power for the community.


In the upcoming year of 2024, advancements could accelerate even faster in which the Indonesian manufacturing industry must be able to keep up. Manufacturing business in the country should offer innovative and high-quality products and services. In line with the progress towards Industry 5.0, Indonesia aims to achieve a more harmonious collaboration between human-centered and technology-based workforce. Slowly, Indonesia is adapting to the Industrial Revolution 5.0 by implementing software for business purposes such as auto responder software, business intelligence software, and more.


Based on research from Research and Markets, the average annual growth of the global cloud computing market is projected to reach 14.1% from 2023 to 2030, reaching US$1.5 trillion (IDR 22.5 quadrillion) by 2030. The simultaneous growth in the adoption of software and cloud computing is a positive signal for the Software as a Service (SaaS) market in Indonesia. Consequently, there is a surge in SaaS companies in Indonesia providing cloud-based software to enhance business convenience and effectiveness.


In alignment with that, Imajin Manufacturing Hub is committed to supporting the development of Indonesia's manufacturing industry towards Industry 5.0. It provides cutting-edge technological solutions, especially for Small and Medium-sized Enterprises (SMEs), by offering Software as a Service for real-time monitoring and project management. Additionally, Imajin offers services such as 3D Project, Mold & Dies Making, Product & Part Fabrication, Machining Center, and Manufacturing Project.


Imajin is ready to be a reliable partner for manufacturing businesses, contributing to mutual success.


Imajin: Integrated and Trusted Manufacturing Solution

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