Industry Minister Targets Export Manufacturing Share to Rise to 30 Percent
The Ministry of Industry is targeting an increase in the export market share of the manufacturing industry from the current 20 percent to 30 percent, without reducing the sector’s capacity to meet national needs.
Industry Minister Agus Gumiwang Kartasasmita explained that the current sales composition of manufactured products is still dominated by the domestic market, with around 80 percent for domestic needs and 20 percent for export. Going forward, the ministry is targeting a shift in this composition to 70 percent for the domestic market and 30 percent for export.
“The domestic market remains the main strength of national industry. However, going forward, we need to strengthen export-oriented industries so that the penetration of Indonesian manufactured products in the global market becomes greater. The target is for the current composition of around 20 percent export and 80 percent domestic to increase to 30 percent export and 70 percent domestic, without reducing the industry’s ability to meet domestic market needs,” said Agus in a statement on Tuesday, 9 June 2026.
He revealed that strengthening export-oriented manufacturing is one important step to increase the resilience of the industrial sector while expanding access for Indonesian products to international markets.
Based on data from the Central Statistics Agency (BPS), Indonesia’s economy grew by 5.61 percent in the first quarter of 2026. During this period, the processing industry sector grew by 5.04 percent and was the largest contributor to the national gross domestic product (GDP), with a contribution of 19.07 percent valued at IDR 1,179.62 trillion.
In terms of investment, the processing industry recorded a realised investment of IDR 182.04 trillion, equivalent to 36.49 percent of total national investment. Meanwhile, the export value of processing industry products from January to April 2026 reached 75.57 billion US dollars, contributing 82.01 percent to total national exports.
Agus emphasised that increasing manufacturing exports must go hand in hand with efforts to maintain the domestic market, which has so far been the foundation of national industrial growth. Therefore, his ministry continues to strengthen industrial competitiveness through the provision of fiscal and non-fiscal incentives, measured import controls, and the strengthening of domestic industry protection instruments. In addition, the Ministry of Industry is also encouraging the implementation of the Local Currency Settlement (LCS) scheme as an instrument to strengthen national industrial resilience amid exchange rate fluctuations.