Jakarta (ANTARA) – Indonesia's manufacturing sector was a key driver of national economic growth, which reached 5.11 percent in 2025, according to Statistics Indonesia, supported by rising investment and increased industrial activity.The Indonesian Chamber of Commerce and Industry (Kadin) reported that the economy expanded 5.39 percent year-on-year in the fourth quarter of 2025, with manufacturing output growing 5.40 percent. Gross fixed capital formation (GFCF) rose 6.12 percent during the same period.In a statement issued on Saturday, Kadin Vice Chairman Bayu Priawan Djokosoetono said Indonesian businesses continued to invest, reflected in 6.12 percent GFCF growth in the fourth quarter of 2025, with domestic investment outpacing foreign investment.He said Kadin expects the manufacturing sector to approach 6 percent growth in 2026, supported by improved plant investment and higher utilization of fixed assets.Manufacturing contributes around 19 percent of Indonesia's gross domestic product, making it the country's largest single contributor to economic output.Indonesia's Manufacturing Purchasing Managers' Index has remained in expansion since August 2025 and stood at 52.6 in January 2026, indicating continued growth in production activity.Meanwhile, the agriculture sector, one of the government's priority areas, grew 5.14 percent in the fourth quarter of 2025 but continues to face productivity challenges.About 28 percent of Indonesia's workforce is employed in agriculture, forestry, and fisheries, yet the sector contributes only around 13 percent of GDP, according to Kadin Food Planning Committee Chairman Frans Tambunan.He stressed the need for modernization, wider technology adoption, and land optimization to improve productivity.The construction sector, which contributes nearly 10 percent of GDP, grew 3.81 percent in the fourth quarter of 2025, in line with government spending growth of 4.55 percent.Kadin Economic and Monetary Planning Committee Chairman Ikhwan Primanda said programs such as housing microloans, school renovations, and infrastructure development could help support further growth in the sector.