Industry

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.