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23 January, 2025
NEWSLETTER
MARKET TRENDS IN INDONESIA
Manufacturing sector in Indonesia - statistics & facts
Indonesia's manufacturing sector, a major GDP and export contributor, employs over 19 million people. Key industries include food, chemicals, and metals, attracting foreign investment due to low labor costs and vast nickel reserves. The government drives modernization through Industry 4.0, enhancing efficiency and value-added exports via initiatives like PIDI 4.0, aiming to position Indonesia as a global manufacturing leader by 2030.
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MACHINERY MARKET PROSPECTS
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Economic and policy driven
Manufacturing makes up 25% of Indonesia's GDP, with industrial machinery as a key sector. The government supports industrialization and digital transformation, driving the machinery market, which is projected to grow at a CAGR of 4-5% and reach US$710 million by 2029.
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International Trade Trends
In 2023, Indonesia's machinery imports reached $1.2 billion, a 20% increase, indicating strong demand for advanced equipment. Exports are expected to grow from $800 million in 2023 to $1 billion by 2025, enhancing the country's competitiveness in international markets.
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Infrastructure construction pull
Government investment in infrastructure, such as roads, harbours, electricity, and public utilities, has significantly boosted the demand for large-scale construction machinery, production equipment, and other industrial tools essential for supporting large-scale development projects.
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