Labour-Intensive Industries Still Require Special Attention
These sunset sectors require special attention because they are major absorbers of labour. Their role is being eroded by changes in the global supply chain and production cost competition.
Jakarta (ANTARA) - The research institute NEXT Indonesia Center assesses that although Indonesia’s processing industry recorded impressive growth in 2025, labour-intensive sectors still face significant pressures and require special attention from the government.
Executive Director of NEXT Indonesia Center, Christiantoko, in a press release in Jakarta on Sunday, highlighted the disparities between subsectors.
He noted the existence of sunrise industries that are growing rapidly, such as basic metals and machinery, while sunset industries like textiles, ready-made garments, wood, as well as rubber and plastics are falling behind. The rubber and plastics industry even experienced a contraction of 4.07% in 2025.
According to him, this situation warrants vigilance because labour-intensive sectors are significant absorbers of employment.
Data from the Central Statistics Agency (BPS) shows that the total number of workers in the processing industry sector reached 20.3 million people in August 2025, or contributing 13.86% to the total national workforce. This figure grew by 1.49% compared to the previous year.
From the investment side, realisations in the processing industry sector reached Rp780.9 trillion in 2025, up from Rp721.3 trillion in 2024.
However, the contribution to the total national investment actually declined from 42.08% in 2024 to 40.44% in 2025.
Christiantoko emphasised the need for reindustrialisation policies targeting the revitalisation of labour-intensive sectors, improvement in workforce quality, and equitable distribution of investment so that industrial growth is truly inclusive and sustainable.
BPS recorded that the processing industry grew by 5.30% year-on-year in 2025. The basic metals industry became the star performer with growth reaching 15.71%, while the machinery and equipment industry recorded growth of 13.98%.
Other subsectors showing stable performance include the chemical, pharmaceutical, and traditional medicine industry, as well as the metal goods, electronics, and electrical equipment industry.