Manufacturing Industry in Indonesia
Indonesia's manufacturing sector is a cornerstone of economic growth, contributing 20% to GDP with strong export potential. With USD 15 billion in FDI and strategic location, Indonesia offers unparalleled opportunities for foreign manufacturers.
20%
GDP Contribution5.2%
Annual GrowthUSD 15B
FDI in 2024270M+
Consumer MarketWhy Invest in Indonesian Manufacturing?
Indonesia offers strategic advantages that make it an ideal manufacturing hub for foreign investors looking to expand in Southeast Asia.
Strategic Location
Gateway to ASEAN market with 650M+ consumers, positioned between Indian and Pacific Oceans for global trade access.
Young Workforce
Large pool of skilled and semi-skilled workers with competitive labor costs, median age of 29 years.
Government Support
Tax incentives, Special Economic Zones (SEZ), and streamlined licensing through OSS system for manufacturers.
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Indonesian Manufacturing Market 2025
Current market dynamics, key sectors, and competitive landscape
Market Size & Growth
Indonesia's manufacturing sector has demonstrated remarkable resilience with:
- USD 250B+ annual manufacturing output
- 5.2% year-on-year growth rate
- 20% contribution to national GDP
- 15M+ direct manufacturing jobs
Key Manufacturing Sectors
Request comprehensive manufacturing market research and feasibility study
Manufacturing Trends in Indonesia 2025
Key developments shaping the manufacturing landscape
Industry 4.0 Adoption
Rapid adoption of automation, IoT, and smart manufacturing technologies across major facilities.
EV Manufacturing Hub
Government push to become Southeast Asia's electric vehicle and battery production center.
Green Manufacturing
Increasing focus on sustainable practices, renewable energy, and circular economy principles.
Export-Oriented Growth
Leveraging FTAs and strategic location to boost manufactured exports to global markets.
Digital Transformation
Integration of AI, big data analytics, and cloud computing in manufacturing processes.
Supply Chain Resilience
Building robust local supply chains as part of China+1 and diversification strategies.
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Why Foreign Investors Choose Indonesian Manufacturing
Compelling reasons to establish your manufacturing operations in Indonesia
Cost Competitiveness
Lower labor and operational costs compared to developed markets, up to 40% savings.
Tax Incentives
Corporate tax holidays, import duty exemptions, and investment allowances for priority sectors.
Infrastructure
Rapidly improving ports, roads, and industrial zones with world-class facilities.
Regulatory Support
Omnibus Law streamlines business licensing and creates investment-friendly environment.
How Gaivo Helps You Invest in Manufacturing
End-to-end support for establishing your manufacturing operations
Company Formation
PT PMA registration, NIB acquisition, and investment licensing (BKPM coordination).
Industrial Licensing
Manufacturing permits, environmental clearances (AMDAL/UKL-UPL), and sectoral approvals.
Tax & Accounting
Corporate tax setup, incentive applications, and ongoing compliance management.
Immigration Support
Work permits (KITAS), expat quotas (RPTKA), and visa arrangements for foreign staff.
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KBLI Categories for Manufacturing
Explore Indonesian Standard Industrial Classification (KBLI) business categories relevant to the manufacturing sector. View all categories
Showing 12 of 152 categories for manufacturing
View All 152 CategoriesNeed Help Choosing the Right KBLI Code?
Selecting the correct KBLI code is crucial for your NIB registration and business licensing. Our experts can help you identify the most appropriate classification for your business activities.
Ready to Invest in Indonesian Manufacturing?
Our team provides comprehensive support from company formation to operational setup. Schedule a free consultation to discuss your manufacturing investment.
Invest in Indonesian Manufacturing
