Industrial development is perhaps the most important pillar of Indonesia’s long-term economic expansion strategy, and the nation has made significant economic strides in recent years as a result of its fast-expanding industrial sector. The country is now poised to outpace Thailand and Malaysia as a major regional manufacturing and export hub, and investors are increasingly choosing Indonesia over China, Thailand and Malaysia, drawn in by the country’s relative stability, sizeable low-cost labour pool and large domestic market. While it will make Indonesian exports more attractive to the global market, many of Indonesia’s major industries remain import-dependent, and rising input costs represent the most significant challenge facing operators. Industry and manufacturing are nonetheless poised to continue on an upwards trajectory, with major sectors – including pharmaceuticals, automotive manufacturing, textiles and metals – all projected to expand on the back of solid macroeconomic fundamentals.

This chapter contains interviews with Suryo Sulisto, Chairman, Indonesian Chamber of Commerce and Industry; Sudirman MR, Chairman, Association of Indonesian Automotive Industries; Eddy K Logam, Chairman, Indonesia Ship Building and Offshore Association; and Iwan S Lukminto, President, Sri Rejeki Isman.

Previous chapter from this report:
Transport, from The Report: Indonesia 2015
First article from this chapter and report:
Supporting expansion of industry in Indonesia
Cover of The Report: Indonesia 2015

The Report

This chapter is from the Indonesia 2015 report. Explore other chapters from this report.

Interviews & Viewpoints

Sketch of Iwan S Lukminto, President, Sri Rejeki Isman (Sritex)
Iwan S Lukminto, President, Sri Rejeki Isman (Sritex): Interview

Covid-19 Economic Impact Assessments

Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.

Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.

Register Here×

Product successfully added to shopping cart