Wednesday, 07 May 2025 11:52

Contribution of Non-Oil and Gas Manufacturing Industry to the Economy Continues to Increase

The non-oil and gas manufacturing sector’s share of the national economy rose to 17.50% in Q1 2025, up from 17.47% in Q1 2024 and from the full-year 2024 level of 17.16%. This incremental increase over the January–March period reflects a steady upward trajectory driven by expanded production capacities, improved export performance, and the gradual recovery of domestic demand in key subsectors such as automotive parts, food processing, and electronics.


Minister of Industry Agus Gumiwang Kartasasmita lauded manufacturers for demonstrating resilience and competitiveness despite global economic headwinds and a surge of low-cost imports. He underscored that ongoing downstreaming initiatives—aimed at moving from raw commodities to high-value finished goods—and the Optimization of Domestic Product Usage (P3DN) through stricter Domestic Component Level (TKDN) requirements (reformed as of January 2025) are central to adding value locally, curbing import dependence, generating employment, attracting investment, and boosting exports.

Source:
https://swa.co.id/read/459378/kontribusi-industri-pengolahan-nonmigas-ke-perekonomian-kian-meningkat

 

 

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