Jakarta, August 7, 2025 – The Europe Today: Indonesia’s non-oil and gas manufacturing sector recorded a 5.6% year-on-year growth in the second quarter of 2025, but this figure could have been significantly higher with more supportive policies, according to the Ministry of Industry (Kemenperin).
Spokesperson Febri Hendri Antoni Arif stated on Wednesday that this growth showcases the resilience of the manufacturing sector amidst global economic pressures and reaffirms its position as a key driver of the national economy.
“Even with policies that are not fully supportive of manufacturing, we’ve achieved 5.6% growth,” Arif remarked. “With pro-industry policies, the performance could be much higher.”
He called for strategic support to domestic industries through import control, smooth supply of raw materials (especially gas), and redirection of finished goods to eastern ports.
Responding to concerns over discrepancies between BPS growth data and S&P Global’s Manufacturing PMI, Arif noted that the government relies on more representative indicators such as the Industrial Confidence Index (IKI) and Bank Indonesia’s Prompt Manufacturing Index (PMI BI).
In July 2025, IKI stood at 52.89, up from 51.84 the previous month, reflecting growing optimism among domestic manufacturers despite slowdowns in major economies like the US, Europe, Japan, and China.
In the first half of 2025, 1,641 companies reported the establishment of new production facilities via the National Industrial Information System (SIINas), with investments totaling Rp803.2 trillion. This expansion resulted in the creation of over 303,000 new jobs.
Arif stressed the Ministry’s commitment to maintaining this momentum and highlighted the need for pro-industry policies to drive sustainable growth and employment.
