Indonesia's Industrial Contribution to GDP Ranks 4th Globally

Industry is a vital sector for the Indonesian economy. This is reflected in the contribution of the industrial (manufacturing) sector, which still dominates the national Gross Domestic Product (GDP) by 20.16% in 2017. This figure is equivalent to Rp 2,739.4 trillion out of a national economy of Rp 13,588.8 trillion.

Based on the 2016 UNIDO presentation by the Coordinating Minister for the Economy, titled "Government Policy in Driving the Industrial Sector in the Era of Industry 4.0," Indonesia's industrial contribution to GDP ranked fourth largest in the world in 2015. Indonesia's manufacturing sector contributed 22% to the national GDP, second only to South Korea, China, and Germany.

To increase the GDP of the industrial sector, the government must encourage industrial players to immediately adopt the Industry 4.0 revolution. This aims to increase productivity by leveraging technology. Adopting technological advancements is expected to improve raw material efficiency and add value to products. To avoid the threat of job losses, the industrial revolution will focus on priority sectors that can drive the domestic economy.