Manufacturing GDP Ratio 2025 Target Encounters Limitation

It's important to note that reclaiming Indonesia's status as an industrial powerhouse necessitates enhancing manufacturing quality, expanding market access, and facilitating capital flow to expedite the transition to a developed nation.

Annasa Rizki Kamalina

22 Apr 2024 - 19.10
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Manufacturing GDP Ratio 2025 Target Encounters Limitation

Aerial photo of the container storage area at the IPC Terminal Petikemas (IPC TPK) port in Tanjung Priok, taken on Friday (20/10/2023). Bisnis-Adam Rumansyah.

Bisnis, JAKARTA — Deindustrialization remains a persistent challenge that policymakers struggle to overcome. Despite efforts, the target for the contribution of the processing industry to the gross domestic product next year is set at a rather pessimistic level of 19%, following a previous struggle to maintain it at 18%.

The formulation of the 2025 Government Work Plan (RKP), as prepared by the Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas), targets a gross domestic product (GDP) ratio for the processing industry of only 19.3%-19.6% in 2025. 

This reflects a sense of pessimism among policymakers regarding the ability to swiftly address deindustrialization or the decline in manufacturing's contribution to GDP. Moreover, the manufacturing GDP ratio has remained relatively stagnant from year to year.

The share of manufacturing in GDP last year was recorded at 18.67%, showing a slight improvement from the previous period's 18.34%. However, there remains stagnation in the contribution of the industry to economic growth.

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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.