Manufacturing Industry Main Contributor to the Wheel of the Economy, Beware of Provocations of Economic Weakening
Jakarta – As the main driver of the economy, the manufacturing industry covers various strategic sub-sectors such as food and beverages, textiles, metals, chemicals, and pharmaceuticals. The growth of these sub-sectors is the main indicator of the development of the national economy in general.
The Central Statistics Agency (BPS) noted that the manufacturing industry sector was the main contributor to economic growth based on business fields in the first quarter of 2025. The growth of this sector was recorded at 4.55% and contributed 19.25% to the national economy during that period.
“The 4.55% growth in the manufacturing industry was driven by increasing demand from within and outside the country,” said Head of BPS, Amalia Adininggar Widyasanti.
The growth of the manufacturing industry sector in the first quarter of 2025 was mainly supported by the food and beverage industry sub-sector which recorded growth of 6.04%.
The Minister of Industry, Agus Gumiwang Kartasasmita, said that the increase in Manufacturing Value Added (MVA) had an impact on Indonesia’s position as a global manufacturing country.
“Indonesia is far superior compared to other ASEAN countries, such as Thailand and Vietnam whose MVA values are only half of Indonesia’s MVA value,” said Agus.
In addition, the basic metal industry experienced significant growth of 14.47%, driven by a surge in export demand, especially for iron and steel commodities. On the other hand, the trade business sector experienced growth of 5.03% and contributed 13.22% to the total national economic growth in the first quarter of 2025.
Meanwhile, the agricultural sector recorded the highest growth of 10.52%, with a contribution of 12.66%. The positive growth in the agricultural sector was driven by food crops which jumped 42.26%, along with the rice and corn harvest season and the increase in production of the two commodities. The livestock sector also recorded growth of 8.83%, triggered by increased consumption of meat and eggs during Ramadan and Eid al-Fitr.
Overall, the Indonesian economy in the first quarter of 2025 grew by 4.87%. Gross Domestic Product (GDP) based on current prices was recorded at IDR5,695.9 trillion, while at constant prices it reached IDR3,264.5 trillion. Compared to the fourth quarter of 2024, the Indonesian economy contracted by 0.98%.
However, amidst its large contribution, the industrial sector is now facing new challenges in the form of systematic provocations that have the potential to weaken the foundation of the national economy. Therefore, collective vigilance is needed against all forms of economic provocation that could disrupt development stability. It is necessary to strengthen the narrative based on data and concrete achievements in the field, to show that the manufacturing industry sector remains the main force in supporting national economic recovery and growth.
