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Indonesia is a World Class Manufacturing World


JAKARTA – The Minister of Industry considers the country’s industry has a high potential as a strong manufacturing country in the world.

Based on the purchasing managers’ index (PMI) report released by Nikkei and Markit, Indonesia’s manufacturing PMI raise to 51.4 in February 2018, compared to January’s 49.9. The PMI above 50 indicates manufacturing is expansive. In fact, Indonesia’s manufacturing PMI performance in February 2018 also showed the highest position in operational condition since June 2016 or 20 months ago.

Airlangga Hartarto, Minister of Industry, said the national economy is getting more competitive both at ASEAN and global level. “We say, the Indonesian economy will be in the Top 10 position and its export contribution can reach 10% of GDP. Moreover, at this time, Indonesia has entered one trillion dollar club, “said Airlangga in a press release today (17/3/2018).

He delivered several international research results indicating that Indonesia is still the main destination for investment. As for the  US News & World Report survey, Indonesia is rated as the second best investment destination in the world, from 80 countries. This rating is determined based on three indicators, namely population, total GDP, and GDP growth in 2016.

“We have a vast domestic market advantage, with a population of over 250 million. In addition, market capitalization reached US $ 500 billion, “he said.

In fact, Indonesia will also become the largest digital economy in ASEAN by 2020. “This potential we show with the number of internet users and mobile phone sales of up to 60 million units per year,” he said.

According to him, Indonesia is ready to face and undergo a fourth industrial revolution or Industry 4.0 which aims to improve the efficiency and quality of national manufacturing products to be more competitive in the global arena. “There are five lighthouse industries that we prepare, namely food and beverage industry, textile and apparel, automotive, electronics, and chemistry,” he added.

Meanwhile, for small and medium enterprises (IKM), Kemenperin has launched IKM e-Smart program in cooperation with several domestic marketplace. “IKM’s e-smart digital platform aims to improve market access through online or internet marketing,” he said.


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