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ARTICLE · 23 MAY 2020

Indonesia's Manufacturing Sector: Practical Information For Investors

Indonesia's manufacturing sector has historically played a key role in the country's economic development and now contributes to 20 percent of GDP.

IndonesiaGovernment, Public Sector
  • Indonesia's manufacturing sector has historically played a key role in the country's economic development.
  • The majority of businesses in the manufacturing sector are mostly located on the island of Java. The island accounts for 60 percent of the population and 58 percent of GDP.
  • The main manufacturing hubs are in the provinces of West Java, Central Java province, East Java, and Banten.

Indonesia's manufacturing sector has historically played a key role in the country's economic development and now contributes to 20 percent of GDP.

The government has ambitious plans to propel the country into the top ten biggest economies in the world by 2030, with manufacturing at the heart of this goal. The main areas of production include textiles and garments, food and beverages (F&B), electronics, automotive, and chemicals, with the majority of manufacturers in this sector comprising of micro, small, or medium-sized enterprises.

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