The manufacturing sector is the mainstay sector of the economy of developing countries, including Indonesia. This can be seen from the value of investment, export contribution, and the level of employment. Similarly, in terms of tax contributions, - sources of formal activity and foreign exchange of the country. Therefore, the productivity and competitiveness of the manufacturing sector must continue to be improved. Structural transformation requires the industrial sector, both manufacturing and construction, so that the national economy can grow faster.
The Covid-19 pandemic is also one of the crises faced by the manufacturing sector. The post-pandemic recovery of this sector shows that manufacturing still has strength, supported by a wealth of natural resources and a broad market. Therefore, to increase the contribution of the manufacturing sector, it is necessary to reorient and strengthen strategies in optimizing global market opportunities. The efforts taken include equalizing the ability and quality of the domestic industrial sector with those in other countries, including with technological updates. Furthermore, it is necessary to follow institutional policies taken by other countries because they affect investment decisions to be invested in Indonesia. Regarding the decline in the contribution of the manufacturing sector to GDP, senior researcher of LPEM FEB UI who is also an Expert of the Minister of Finance for Industry and International Trade, Kiki Verico believes that this needs to be improved. The manufacturing sector contributes to the added value of national GDP by 19 percent, the largest among other sectors. This sector is also the third largest sector in employment.

Source:
https://industri.kontan.co.id/news/angkat-sektor-manufaktur-kemenperin-bersama-industri-perlu-transformasi-struktural