Growth and Contribution of Indonesia’s Manufacturing Industry Strengthened in 2025

The Central Statistics Agency (BPS) noted that the performance of Indonesia's processing industry showed a strong recovery in 2025.

Based on the gross domestic product (GDP) at constant prices (ADHK), the processing industry grew by 5.3% annually to Rp2.76 trillion compared to 2024. This growth rate is the highest in the last 13 years.

In addition to recording the highest growth, the manufacturing industry has also become the largest contributor to the national economy.

In 2025, this sector contributed 19.07% to the total national GDP, which reached Rp23.82 trillion. This proportion is the largest in the last four years.

However, the processing industry still faces structural challenges. As the backbone of the economy, this sector remains the largest contributor to the national GDP, but its contribution has shown a declining trend in the long run.

From the sub-sector perspective, food and beverages are the largest contributor to the GDP, while some other sub-sectors have a relatively small contribution.

In 2025, the coal processing and oil refining industries contributed 1.78% to the national GDP. Meanwhile, the non-oil processing industry contributed 17.28% to the GDP, with the following breakdown:

1. Food and beverages: 7.13%
2. Chemicals, pharmaceuticals, and traditional medicine: 1.83%
3. Electronics, computers, and electrical goods: 1.60%
4. Transportation equipment industry: 1.27%
5. Basic metal industry: 1.15%
6. Textiles and apparel: 0.97%
7. Tobacco processing industry: 0.68%
8. Paper and paper products industry: 0.64%
9. Non-metallic mining industry: 0.46%
10. Rubber industry: 0.37%
11. Wood industry: 0.36%
12. Machinery and equipment: 0.28%
13. Leather, leather goods, and footwear: 0.24%
14. Furniture industry: 0.19%
15. Other processing: 0.12%

The positive performance of the processing industry in 2025 confirms the strategic role of the manufacturing sector in supporting the national economic growth, and shows the potential for a stronger recovery in the future if supported by sustainable policies and investments.