Ina Primiana, an economist from the Center of Reform on Economics (CORE) Indonesia, revealed that Indonesia's manufacturing output contributes USD 241 billion globally, positioning the country among the top 10 nations with the largest manufacturing output. Despite being surpassed by China, which holds the top position with a manufacturing output value of USD 4.9 trillion in 2021, the United States remains second with a contribution of USD 2.4 trillion. Indonesia's manufacturing sector is performing expansively, evident in the Purchasing Managers' Index (PMI) reaching 52.2 in December 2023, surpassing the PMIs of Asian, American, and European countries. Notably, Indonesia's PMI outperforms nations like India and China. The manufacturing industry in Indonesia remains a significant investment destination, accounting for 41.2% of the total investment realization from January to November 2023. The manufacturing sector's favorable performance is reflected in the Industrial Confidence Index (IKI), where 15 sub-sectors experienced expansion in December 2023, contributing 86.3% to the non-oil and gas processing industry's GDP. Sub-sectors such as beverages, tobacco, food processing, leather and footwear, transportation equipment, ready-made garments, furniture, basic metals, and motor vehicles demonstrated robust performance. These sub-sectors not only fulfill domestic demand but also receive foreign orders, with domestic orders ranging from 73% to 95%, while foreign orders can reach up to 28%.
Key export contributors from Indonesia's manufacturing industry, between January and November 2023, include basic metals, food, chemicals, motor vehicles, trailers, and semitrailers, as well as other processing industries. The top five importing sectors during the same period consist of machinery and equipment (excluding transport equipment), chemicals and chemical goods, computers, electronic goods, optics, basic metals, and food. Ina Primiana underscored the need for continuous efforts to strengthen Indonesia's manufacturing sector, focusing on innovation, increased efficiency, and environmental sustainability. Despite global competition, Indonesia's manufacturing prowess remains noteworthy, positioning the country as a vital player in the global industrial landscape.
