Indonesia continues to strengthen its position as a key manufacturing destination in Asia, as manufacturing investment in Indonesia reached an impressive US $34.5 billion (Rp 571 trillion) over the past year. Minister of Industry Agus Gumiwang Kartasasmita announced that nine new industrial zones have been added across various regions, signaling investor confidence and sustained industrial growth. The expansion, he said, demonstrates Indonesia’s resilience and growing appeal in the global manufacturing landscape.
“The growth of industrial zones is concrete evidence that Indonesia remains a top destination for manufacturing investment in Asia. These nine industrial zones strengthen the domestic manufacturing ecosystem that already exists,” said Minister Agus in Jakarta on Tuesday (October 21).
Expanding Industrial Zones Strengthen National Growth
The addition of nine new industrial zones reflects Indonesia’s ongoing efforts to boost regional economic development. The new zones include:
- IPIP Central Sulawesi
- I-Sentra East Java
- Huadi Bantaeng Industrial Park South Sulawesi
- Cikembar II Industrial Zone West Java
- Losarang Industrial Zone West Java
- Purwakarta Integrated Industrial Park West Java
- Pulau Penebang Industrial Zone West Kalimantan
- Seafer Industrial Zone Central Java
- Tembesi Industrial Zone West Kalimantan
This expansion adds more than 4,400 hectares of industrial land, boosting manufacturing capacity and infrastructure. It also created around 310,000 new jobs, a 15% increase from the previous year. According to Agus, this progress confirms the manufacturing sector’s strong role in supporting Indonesia’s economic momentum.
Manufacturing Investment Indonesia Spurs Economic Momentum
The Ministry of Industry recorded a 9.26% rise in manufacturing investment, reaching US $34.5 billion. The growth also led to a 1.12% increase in tenant companies across industrial zones, adding 132 new manufacturers.
“This growth directly contributed to a rise in investment of IDR 571.58 trillion, or 9.26% higher, and created around 310,000 new jobs—an increase of 15% compared to the previous year,” explained the Minister.
He highlighted that government support through adaptive policies and business-friendly regulations plays a vital role in encouraging investment. The newly developed industrial zones, combined with improved infrastructure and simplified procedures, are helping position Indonesia as a reliable manufacturing hub in Asia.
Read More: Indonesia Investment Growth Hits $92B, Drives 1.9M Job Creation
Fiscal Incentives and Global Partnerships Drive Expansion
The government continues to strengthen the sector through fiscal incentives and international cooperation. Key incentives include:
- Tax holidays for large-scale investors
- Tax allowances for medium enterprises
- Investment allowances to encourage capital reinvestment
These measures helped raise total industrial investment to Rp 827.8 trillion between October 2024 and October 2025, a 6.44% increase from the previous year.
Minister Agus also emphasized Indonesia’s growing international partnerships. “The year 2025 marks an important milestone as Indonesia officially joins BRICS, the Indonesia–Canada Comprehensive Economic Partnership (ICA-CEP), and the Indonesia–Peru Comprehensive Economic Partnership (IPE-CEP),” he said. These collaborations are expected to expand export opportunities and strengthen Indonesia’s role in global supply chains.
To protect domestic industries, the government has applied trade remedy policies such as Safeguard Import Duties (BMTP) on five imported products and Anti-Dumping Duties (BMAD) on seven others. Agus noted, “This step is crucial to maintain balance between market needs and the sustainability of domestic industries.”
Technology, Sustainability, and Workforce Readiness
Indonesia is also pushing forward with its Industry 4.0 transformation and sustainable production. The Ministry recorded 5,113 active Indonesian National Standards (SNI) in the industrial sector, with 88 new draft standards and 72 Green Industry Standards (SIH) added this year. These efforts have already contributed to a 7.2 million-ton reduction in CO₂e emissions in 2024.
Workforce development is another top priority. So far, 4,595 vocational high school graduates and 2,644 polytechnic graduates have entered the industrial workforce, while 2,587 participants completed vocational training and 713 individuals earned international competency certifications.
“The international class and overseas internship programs in Japan and China are also being expanded to prepare human resources ready to compete in global markets,” said Agus.
Read More: Indonesia’s Workforce Development to Boost Investment Growth
Strengthening the Future of Industrial Development Indonesia
Minister Agus praised the achievements of the industrial sector during the first year of the Prabowo–Gibran administration. “Despite global uncertainty, our industry remains resilient and continues to drive national economic growth. These accomplishments are the result of collective hard work between the government, the business sector, and all industry stakeholders,” he said.
He remains confident that with adaptive policies, cross-sector collaboration, and continuous innovation, Indonesia’s industrial sector will grow stronger, more self-reliant, and globally competitive.
Source: infoekonomi.id
Image: Pexels
