The Processing Industry's Growth Consistently Lagged Behind National GDP from 2014-2023

Indonesia's economy, based on its Gross Domestic Product (GDP) at current prices, reached Rp20.89 quadrillion in 2023.

The largest contribution came from the manufacturing industry, amounting to Rp3.9 quadrillion (18.67%). This signifies the industry's crucial role as the main pillar of the domestic economy.

However, the manufacturing industry has not been able to become the engine of growth. This is evident from its growth rate consistently lagging behind the national GDP growth.

In 2023, the manufacturing sector grew by only 4.64%, below the national GDP growth of 5.05%.

This trend has persisted over the past decade, as shown in the graph.

To boost Indonesia's economic growth rate, strong impetus is needed from the manufacturing sector, the largest contributor to the GDP.

However, the manufacturing industry's contribution to the GDP has shown a declining trend over the past decade.

In 2014, the manufacturing industry contributed 22.08% to the national GDP. Since then, its contribution has decreased to 18.67% in 2023.

Here's a breakdown of the contribution of each business sector to the national GDP in 2023, ordered from largest to smallest:

* Manufacturing Industry: 18.67%
* Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles: 12.94%
* Agriculture, Forestry, and Fisheries: 12.53%
* Mining and Quarrying: 10.52%
* Construction: 9.92%
* Transportation and Warehousing: 5.89%
* Information and Communication: 4.23%
* Financial and Insurance Services: 4.16%
* Public Administration, Defense, and Compulsory Social Security: 2.95%
* Education Services: 2.79%
* Accommodation and Food Service Activities: 2.52%
* Real Estate: 2.42%
* Other Services: 1.94%
* Business Services: 1.83%
* Health and Social Work Activities: 1.21%
* Electricity and Gas Supply: 1.04%
* Water Supply, Waste Management, Waste and Recycling: 0.06%