The Proof of Indonesia's Manufacturing Sector Successfully in the World

The Indonesia's manufacturing sector cannot be underestimated since in the past few years, the sector which has been become the government's priority has been able to make positive achievements in the world.

 

Some evidence of the success of the manufacturing sector are:

 

The contribution of the manufacturing sector to the economics world with a share of 20.5 percent is the highest in ASEAN. The data derived from World Bank report year 2017.

 

"From these achievements, Indonesia ranked fifth in the world for countries who are members of the G20," said Minister of Industry Airlangga Hartarto.

 

According to data from the United Nations Industrial Development Organization (UNIDO), Indonesia ranks 4th in the world from 15 countries whose manufacturing industry's contribution to gross domestic product (GDP) is above 10 percent.

 

"We often hear of deindustrialization because the manufacturing contribution to GDP must be above 30 percent. If we refer to data from UNIDO and World Bank, there is no contribution of the manufacturing sector in the world that is above 30 percent, "he said.

 

UNIDO says that the average manufacturing sector deposits to GDP only reached 17 percent in industrialized countries. While Indonesia can contribute up to 22 percent, under the South Korea (29%), China (27%), and Germany (23%). However, Indonesia surpassed Mexico (19%) and Japan (19%). Meanwhile, countries with industrial sector contributions that are below the average of 17 percent, including India, Italy, Spain, the United States of America, Russia, Brazil, France, Canada and the United Kingdom.

 

In addition, seeing the results of the Nikkei survey and Markit IHS, Indonesian Manufacturing Purchasing Managers' Index (PMI) during the January-November 2018 period is still above 50, which indicates an expansive manufacturing. In November 2018, Indonesia's PMI Manufacturing ranked 4th in ASEAN, surpassing Thailand (49.8), Malaysia (48.2) and Singapore (47.4).

 

The Minister of Industry also added, “Making Indonesia 4.0” hold big aspiration that is to make Indonesia one of the 10 most powerful economies in the world by 2030. Another goal is to increase real gross domestic product (GDP) growth by 1-2 percent and create new jobs for 10 million people until 2030.