The Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa, has outlined the government's plan to prioritize six key industrial sectors that will serve as the cornerstone for bolstering Indonesia's Gross Domestic Product (GDP) in the National Long-Term Development Plan (RPJPN) for 2025-2045. According to this document, which is set to be enacted into law, the manufacturing sector will play a pivotal role in driving Indonesia's economic growth. These sectors include natural resource-based industries, basic industries, medium-to-high technology industries, sustainable consumer goods industries, innovation and research-based industries, and the creative industry. It is hoped that by 2024, Indonesia can achieve USD 5,500, and hopefully, economic growth can also improve because the potential for it is already there. What is most important to us is to improve the manufacturing sector, which currently shows a declining trend, as stated during the Socialization of RPJPN 2025-2045 and Technocratic RPJMN 2025-2029.
As of 2022, Indonesia's GDP stood at USD 4,580, placing it in the category of an upper-middle-income country. The World Bank classifies a country as upper-middle-income when its per capita GDP falls within the range of USD 4,466 to USD 13,845. This means that Indonesia's GDP must exceed USD 13,845 to become an advanced nation. Meanwhile, the issue of deindustrialization continues to pose a threat as it has led to a decline in the manufacturing sector's contribution to GDP. Originally, its contribution was at 27.41% in 2005. By 2022, it had decreased to 18.34%. To counter this, the government is promoting the industrialization process through measures such as regulatory simplification, strengthening legal certainty, enhancing business competition, and improving competition-related institutions. Suharso aims for the manufacturing sector to contribute 28 percent to Indonesia's GDP by 2045. This sector holds the most significant potential for driving Indonesia's economic growth."
