Industry Still Dominates Indonesia's Economic Contribution

The industrial sector still dominated Indonesia's national economic contribution in 2017. Data from the Central Statistics Agency (BPS) recorded that the manufacturing sector contributed 20.16% to Indonesia's Gross Domestic Product (GDP), which reached Rp 13,588.8 trillion. Meanwhile, industrial economic growth last year only grew by 4.27%, lower than the national GDP growth of 5.07%.

In order to become one of the world's 10 largest economies by 2030, the government must encourage industrial sector businesses to immediately implement the 4.0 industrial revolution. As is known, the manufacturing industry only grew by around 4%, below national GDP growth. In fact, a decline has occurred over the past five years, both in terms of contribution to GDP and sectoral growth.

In 2013, the industrial sector's contribution reached 21.03% of the GDP at current prices, but by the end of last year it was only around 20%. Similarly, sectoral growth fell from 4.37% in 2013 to 4.27% at the end of last year. The majority of Indonesian industries currently still use 1.0-3.0 industrial revolution technologies, so they need to be encouraged to adopt the 4.0 industrial revolution to become a locomotive for manufacturing sector growth.