Jakarta (ANTARA) – Indonesia’s manufacturing sector still has broad room for expansion, with factory utilization averaging 59.28 percent, Industry Minister Agus Gumiwang Kartasasmita said on Thursday.“The current utilization level of non-oil and gas manufacturing shows major opportunities to expand production capacity and further boost GDP,” Kartasasmita said in a statement.Despite global economic headwinds, Indonesia’s manufacturing performance remains robust. Data from Statistics Indonesia (BPS) showed that the non-oil and gas processing sector grew 5.58 percent year-on-year in the third quarter of 2025, outpacing overall economic growth of 5.04 percent.Non-oil and gas exports rose 12.56 percent in the same period, accounting for 85.21 percent of total exports. Leading export products included animal and vegetable fats and oils (up 50.34%), iron and steel (15.88%), machinery and electrical equipment (17.55%), jewelry and gemstones (82.43%), and vehicles and components (8.12%).“Manufactured goods remain the backbone of Indonesia’s exports. They reflect our industrial competitiveness while driving the national economy and sustaining our trade surplus,” Kartasasmita said.From January to September 2025, investment in manufacturing reached 562.7 trillion rupiah (US$33.6 billion), comprising 178.9 trillion rupiah in domestic investment and 383.8 trillion rupiah in foreign investment.The manufacturing sector contributed 37.73% of total national investment and 81 percent of exports, underscoring investor confidence in the industry.It also employed 20.31 million workers, or 13.86 percent of Indonesia’s total labor force. Between February and August 2025, the sector added about 210,000 new jobs, making it the country’s second-largest employer after construction.“This proves that manufacturing not only drives growth but also creates formal employment, supporting families and national development,” Kartasasmita said.
Indonesia sees big potential as factory use stays at 59 percent
