Indonesia's manufacturing sector continues to show positive growth, as indicated by recent data from various institutions. This strong performance underscores the sector's significant contribution to the national economy. One notable data point comes from the World Bank, which reported that in 2023, Indonesia ranked 12th among the Top Manufacturing Countries by Value Added, with a Manufacturing Value Added (MVA) of USD255 billion. This places Indonesia ahead of other ASEAN countries, such as Thailand and Vietnam, whose MVA values were only half of Indonesia's. Globally, Thailand ranked 22nd with an MVA of USD128 billion, while Vietnam ranked 24th with an MVA of USD102 billion. Moreover, Indonesia's MVA in 2023 increased by 36.4% (or USD 68 billion) from USD 187 billion in 2022, elevating its global ranking from 14th in 2022 to 12th in 2023. Indonesia's manufacturing structure is notably advanced and widespread, providing significant value added compared to other ASEAN countries and global competitors.
According to the Minister of Industry, Agus Gumiwang Kartasasmita, maintaining and enhancing this achievement hinges on continuously strengthening the manufacturing sector's competitiveness. Minister Kartasasmita highlighted insights from his recent visit to the Hannover Messe 2024 in Germany, where the German Chancellor and the President of the European Union emphasized the importance of value creation for countries. The Ministry of Industry projects that the contribution of industrial services to the national GDP from 2015 to 2022 was between 3.35% and 3.75%. Additionally, Indonesia's total export of service products in 2022 reached USD23 billion, with maintenance and repair services accounting for approximately USD 370 million of this total. Investment in the manufacturing sector during the same period reached 38.73%, with a value of IDR 155.5 trillion. In terms of exports, non-oil and gas industrial product shipments in the first half of 2024 amounted to USD 91.65 billion, representing 73.27% of total national exports, with employment in the sector reaching 18.82 million jobs.
