Sector
Industry
Indonesia's industrial sector encompasses diverse subsectors that play a significant role in the country’s gross domestic product (GDP). Notably, manufacturing contributed 16.30 percent of Indonesia’s total GDP in the second quarter of 2023, with key activities including the manufacturing of textiles, automotive, electronics, and food processing. During the same period, other subsectors also experienced growth, led by the metal, computer, electronic devices, optical, and electronic appliances industry, which grew by 17.32 percent. This was followed by growth in the basic metal industry by 11.49 percent, the transportation industry by 9.66 percent, the food and beverage (F&B) industry by 4.62 percent, and the paper and recording media industry by 4.50 percent.
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Industry
Indonesia's industrial sector encompasses diverse subsectors that play a significant role in the country’s gross domestic product (GDP). Notably, manufacturing contributed 16.30 percent of Indonesia’s total GDP in the second quarter of 2023, with key activities including the manufacturing of textiles, automotive, electronics, and food processing. During the same period, other subsectors also experienced growth, led by the metal, computer, electronic devices, optical, and electronic appliances industry, which grew by 17.32 percent. This was followed by growth in the basic metal industry by 11.49 percent, the transportation industry by 9.66 percent, the food and beverage (F&B) industry by 4.62 percent, and the paper and recording media industry by 4.50 percent.
Notably, the F&B industry stands out as the only non-mineral industry to have made the largest contribution to the national GDP at 38.61 percent in the first quarter of 2023, having generated US$1.1 billion from 2,226 projects through foreign direct investment (FDI) and Rp 26.72 trillion from 5,416 projects through domestic investment sources.
Indonesia’s massive industrial development has enabled the industrial sector to provide extensive employment opportunities, with over 19 million people employed in the sector, making it the largest workforce in Indonesia as of 2019. By 2024, the government aims to further increase employment in the sector to more than 20 million people.
Among all the subsectors, the non-oil and gas manufacturing industry has emerged as one of the most important in terms of employment, providing work opportunities for approximately 14.13 percent of the Indonesian labor force in 2022. Companies within this subsector are mostly concentrated on the island of Java. Additionally, the Riau Islands are known to have the highest average net wage for manufacturing workers in the country, with around Rp 5.55 million per month as of February 2023.
Furthermore, Indonesia's industrial sector presents promising opportunities for growth and development across various fronts, including Industry 4.0 transformation, adoption of sustainable practices, regional integration with Southeast Asia and Pacific actors, downstream manufacturing, and empowerment of small and medium enterprises (SMEs). Particularly concerning Industry 4.0 transformation, the government administers the integration of advanced technologies into the production process to improve efficiency and product quality. Additionally, efforts are underway to reduce production costs by placing cement, refined petroleum, automotive, and F&B at the forefront of entering Industry 4.0.
Moreover, the incoming administration has promised to bolster the downstream agenda, especially in the mining sector, with plans for 20 new smelters set to become operational between 2024 and 2025. The shift towards downstream mining products, such as bauxite, copper, and tin has the potential to increase their value, with added values reaching up to three to 180 times along the value chain.
Latest News
Transactions at the East Java Trade and Investment Mission to Lampung reached nearly Rp 1.06 trillion. East Java Governor Khofifah Indar Parawansa stated that the achievement represents a significant increase compared to the 2023 event, which saw 35 transactions worth a combined Rp 285.52 billion.
"This achievement is the result of synergy and trust between regions in supporting domestic products. This is clear evidence that East Java remains committed to driving national economic growth and our optimism about realizing the strength of the domestic market," she stated officially on Aug. 8, 2025.
The Trade and Investment Mission was held at Swiss-Belhotel Lampung on Aug. 8, 2025. It was attended by East Java Governor Khofifah, Lampung Governor Rahmat Mirzani Djausal, Acting Bank Jatim President Director Arif Suhirman, and Bank Lampung President Director Mahdi Yusuf.
Khofifah also expected that the signing of the agreement between regional development banks (BPDs) PT Bank Pembangunan Daerah Jawa Timur (Bank Jatim) and PT Bank Lampung will further the connection between the two provinces.
"This [collaboration] will certainly strengthen the performance of BPDs in the two provinces, support economic and financial sector growth, as well as serve as a gateway for cooperation between the provinces of East Java and Lampung. The collaboration is in line with regulations set by the Financial Services Authority (OJK)," she elaborated.
Acting Bank Jatim President Director Arif emphasized that the bank continues to support the East Java Provincial Government's programs, including participation in the Trade and Investment Mission, which had "Enhancing Connectivity Networks between East Java and Lampung Provinces" as its theme.
He explained that Bank Jatim remains committed to supporting East Java's micro, small, and medium enterprises (MSMEs) in increasing their competitiveness so they can penetrate national and international markets.
"We are having MSMEs fostered by Bank Jatim participate in this Trade Mission as part of efforts to expand their market share. We are confident that their products will attract visitors and have the potential to create new business opportunities for the entrepreneurs [involved]," Arif added.
The MSMEs in question are Gajah Mada Batik MSME, Majapahit Chocolate MSME, and CYS Fried Onion MSME. He stated that MSMEs ccould gain a strategic platform to introduce their products to potential markets in Lampung through the event. This allows Bank Jatim to provide various banking services to MSME customers as well as actively provide mentoring and support in developing their businesses.
"The superior products of the MSMEs fostered by Bank Jatim are expected to provide benefits according to the needs of Lampung Province's people," he explained.
The signing of the Conditional Share Subscription and Acquisition Agreement between Bank Jatim and Bank Lampung also took place. The signing was conducted by Arif with Bank Lampung President Director Mahdi, and witnessed by the governors of their respective provinces.
"The purpose of this agreement is to regulate the procedures for implementing capital participation and the formation of a bank business group (holding company) between the parties. Bank Lampung agrees to increase its paid-in capital, which will then be followed by capital participation from the BPD," Arif explained.
He divulged that the holding company was created to strengthen the structure, resilience, and competitiveness of both BPDs in the banking industry. The goal is for banks in a holding company with Bank Jatim could become more competitive regionally and advance the development and economy of their respective regions and Indonesia as a whole.
Mahdi stated that he is confident the BPD holding company will bring many positive changes to Bank Lampung, making it stronger and able to maximize the potential of existing synergies.
"We are confident that synergizing through a holding company with Bank Jatim can have a positive impact on Bank Lampung's business performance. One of the things we will prepare is human resources so that all work programs could be realized properly and optimally," he emphasized.
