The contribution of manufacturing to Indonesia's GDP is on a steady declining trend. Between 2013 and 2017, the value dipped from 21.57 to 21.13. This downward momentum continued from 2018 through 2023, where it reached 20.15. The recent two-year variations show a year-on-year decrease of approximately 0.76% from 2022 to 2023. The 5-year compound annual growth rate (CAGR) forecasts a further decline at an average annual rate of -0.65%, predicting the value to descend to 19.34 by 2028. The forecasted 5-year growth rate indicates an overall decrease of -3.2%.
Future trends to watch for:
- Shifts in global supply chains and their impact on domestic manufacturing.
- Technological advancements and their adoption within various manufacturing sectors.
- Policy changes and government initiatives aimed at revitalizing the manufacturing sector.
- The potential influence of regional trade agreements on manufacturing exports and competitiveness.
