Indonesia’s Ministry of Industry is optimistic that investment in the manufacturing sector will double over the next five years, driven by the strengthened implementation of the Domestic Product Utilization (P3DN) policy and Local Content Requirements (TKDN). The Minister of Industry emphasized the importance of collaboration among ministries, state-owned enterprises, and regional-owned enterprises to further increase the use of locally made products, which is expected to significantly stimulate manufacturing investment growth.
The manufacturing sector demonstrated strong performance in the third quarter of 2025, attracting IDR 185.4 trillion in investment, equivalent to 37.73% of total national investment amounting to IDR 491.4 trillion. The number of TKDN-certified products has continued to rise, approaching 90,000 products from nearly 15,900 companies across small, medium, and large industries. Increased use of domestic products is projected to generate a substantial multiplier effect, with every IDR 1 spent on local products contributing an estimated 2.2 times to the national economy, while consistent government procurement demand is helping industries scale up and improve overall performance.
