The Indonesia International Smart Factory Solutions Exhibition.
Smartfactory IndonesiaSmartfactory IndonesiaSmartfactory Indonesia
(8:30 am - 5:30 pm)
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Market Information

Why Indonesia is a must-do market for smartfactory business now?

With over 273 million populations, Indonesia has been recognized as one of the most important dynamic markets and potential market for the manufacturing industry. Indonesia’s manufacturing sector continues to expand. It can be seen in several manufacturing sector performances that are getting better, such as GDP, investment realization, export achievements, labor absorption, and the Manufacturing Purchasing Manager’s Index (PMI).

In 2021, the industrial sector recorded a GDP of Rp2,946.9 trillion, increasing from 2020 which reached Rp2,760.43 trillion. In 2020, the contribution of the industrial sector in Indonesia which reached 19.8%, also exceeded the world average of 16.5%.

Throughout 2021, investment in the manufacturing sector reached IDR 325.4 trillion. This figure exceeds the manufacturing investment achievement target projected by the Ministry of Industry of IDR 280 trillion to IDR 290 trillion increase of 19% from 2020 (Rp 272.9 trillion). In comparison, in 2019, the realization of investment in this sector was Rp. 215.9 Trillion.

The rapid realization of investment in the industrial sector shows that Indonesia is the right place for business. Besides, it is also good momentum for the economic strengthening of Indonesia after the pandemic.

On the export side, the manufacturing industry also made the biggest contribution in 2021. The value of manufacturing exports in that period reached USD177.10 billion, contributed up to 76.49% of total national exports. Meanwhile, the realization of investment in the manufacturing sector in 2021 was recorded at Rp325.4 trillion, increased of 19.24% from the investment value in 2020.

Indonesia’s manufacturing PMI figures throughout 2021 are generally at an expansionary level. In the 2021 period, Indonesia’s Manufacturing PMI broke several highs record in history, recorded 53.2 in March, 54.6 in April, 55.3 in May, and a peak of 57.2 in October. It shows the expansion in Indonesia’s manufacturing sector will continue until 2022, with a PMI figure of 53.5 in January. According to IHS Markit, general demand conditions have strengthened, which has led to an increase in purchasing activity and the employment aspect.

These indicators show that the industrial sector continues to expand, and there are even some sectors that have improved their performance in the midst of the pandemic. The increasing demand that is starting to recover is an indication of the important foundation that drives the recovery of the Indonesian industrial sector.