ASIATODAY.ID, JAKARTA – Indonesia has once again achieved a remarkable milestone in the industrial sector. In 2023, Indonesia secured a position among the world’s top 12 manufacturing countries by Manufacturing Value Added (MVA), surpassing other ASEAN nations and standing shoulder to shoulder with advanced economies such as the United Kingdom, Russia, and France.
According to World Bank data, Indonesia’s manufacturing value added reached USD 255.96 billion in 2023, marking a 36.4 percent increase compared to USD 241.87 billion in 2022. This achievement is the highest in Indonesia’s history since 1983.
“Indonesia far outperforms Thailand and Vietnam, whose MVA figures are only half of Indonesia’s. Thailand ranks 22nd globally with USD 128 billion, while Vietnam sits at 24th with USD 102 billion,” stated Minister of Industry Agus Gumiwang Kartasasmita in an official statement in Jakarta on Sunday, May 4, 2025.
For context, the global average MVA from 153 countries stands at USD 78.73 billion. Historically, Indonesia’s average MVA from 1983 to 2023 is USD 102.85 billion, with a low of USD 10.88 billion in 1983.
According to the Minister, Indonesia’s manufacturing contribution owes much to its deeply integrated industrial structure, covering both upstream and downstream sectors. This structure positively impacts value creation and Indonesia’s industrial competitiveness.
“Indonesia’s MVA trend has consistently increased since 2019, except during the Covid-19 pandemic. To maintain this momentum, we need strategic, pro-business, and pro-investment policies to ensure our manufacturing sector remains globally competitive,” he emphasized.
Currently, the manufacturing sector contributes 18.67 percent to Indonesia’s Gross Domestic Product (GDP), making it the largest contributor among all sectors. This confirms that manufacturing continues to be the main driver of national economic growth, job creation, and export competitiveness.
“Indonesia holds significant potential to further expand its global market share, particularly through exports of high value-added downstream products such as food and beverages, textiles, metals, automotive, and electronics,” the Minister explained.
This achievement is a tangible result of Indonesia’s national industrialization policies, which focus on downstreaming natural resources, boosting industrial competitiveness, and promoting technological innovation.
The Ministry of Industry consistently promotes Protection of domestic industries through policies safeguarding the domestic market from import surges, Implementation of Making Indonesia 4.0 to strengthen industrial structures and accelerate the adoption of Industry 4.0 technologies, Provision of incentives for export-oriented and import-substitution industries, Development of a green and sustainable industrial ecosystem in preparation for the transition towards a low-carbon economy, Strengthening of international partnerships to support global market expansion.
With its ever-growing manufacturing contribution, Indonesia is firmly establishing itself as a key player in the global economy—opening vast opportunities for increased exports and future investments. (AT Network)
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