The Indonesian processing or manufacturing industry showed outstanding performance by growing 5.15 percent annually throughout 2025. This achievement represents the highest growth rate since the pandemic and reaffirms manufacturing's role as the primary backbone of the national Gross Domestic Product (GDP), contributing nearly 19 percent. This robust growth was driven by resilient domestic consumption and a significant increase in Gross Fixed Capital Formation (PMTB) investment. This positive momentum serves as clear evidence that the domestic industrial sector possesses high resilience amidst global economic dynamics throughout 2025.
For association members and business players, this strengthening trend is expected to continue into 2026 as the Manufacturing Purchasing Managers' Index (PMI) remains in expansion territory. Kadin Indonesia hopes that factory utilization and fixed assets can reach optimal levels to push industrial growth toward the 6 percent mark in the upcoming period. Furthermore, modernization through technological innovation and strengthening domestic investment remain the keys for entrepreneurs to stay competitive in international markets. With strong synergy between government fiscal policies and the investment spirit of industry players, manufacturing is projected to remain a pillar of national economic stability.
