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Indonesia sees 5.19% increase in metal, machinery, transportation equipment, and electronics industries

Source
Tempo - September 17, 2025

Nandito Putra, Jakarta – Indonesia's Ministry of Industry (Kemenperin) recorded positive performance in the metal, machinery, transportation equipment, and electronics (ILMATE) industry sector in the first half of 2025. Gross Domestic Product (GDP) growth in this sector reached 5.19 percent annually, higher than the 4.89 percent growth in the same period the previous year.

"This growth even exceeds the average for the non-oil and gas processing industry and national GDP," said Setia Diarta, Director General of ILMATE at the Ministry of Industry, during a working meeting with Commission VII of the House of Representatives (DPR), Tuesday, September 16, 2025.

Setia explained that throughout the second quarter of 2025, the ILMATE sector's contribution to national GDP remained stable at around 4.19-4.32 percent. Meanwhile, the non-oil and gas processing industry's contribution to GDP reached 24.7 percent.

According to Setia, this achievement demonstrates that the ILMATE sector remains a crucial pillar in supporting the processing industry and national economic growth.

Investment performance in the ILMATE sector has fluctuated in recent years. In 2023, Setia said, investment realization was recorded at Rp262.91 trillion, increasing to Rp320.45 trillion in 2024.

Entering 2025, investment reached Rp92.45 trillion in the first quarter and Rp88.90 trillion in the second quarter, or a total of around Rp181.35 trillion by mid-year. Foreign Direct Investment (PMA) continues to dominate investment in this sector, accounting for a significant proportion of the total realization.

Meanwhile, in terms of foreign trade, the ILMATE sector also showed a positive trend. In 2024, exports reached US$109.3 billion. Throughout 2025, export performance remained stable at around US$23-US$25 billion per quarter.

Meanwhile, Setia continued, imports in this sector also increased in line with the need for raw materials and components, indicating continued dynamism in industrial activity.

Setia added that the positive growth rate of the ILMATE sector throughout the first half of 2025 demonstrates that this industry continues to play a strategic role in strengthening the competitiveness of the non-oil and gas processing industry and driving national economic growth.

"With stable contributions and positive investment and trade trends, the ILMATE sector will continue to be a driving force for national industrial development," he said.

Source: https://en.tempo.co/read/2049527/indonesia-sees-5-19-increase-in-metal-machinery-transportation-equipment-and-electronics-industrie

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