Industry Minister Targets 7.29% Growth in Manufacturing Sector for 2025

JAKARTA, investortrust.id – The Indonesian government has set an ambitious target for 8% economic growth by 2028–2029. As the backbone of the national economy, the Ministry of Industry aims for the manufacturing sector to grow by 7.29% this year and 8.59% by 2028.

“The industrial sector is also expected to contribute 17.96% to the national GDP this year, rising to 20.92% by 2029,” Industry Minister Agus Gumiwang Kartasasmita stated in a written statement on Wednesday, Jan. 22, 2025.

The minister emphasized that this year, the ministry must work more efficiently and collaborate more effectively. With a reduced budget of Rp 2.519 trillion compared to last year, governance must be more precise, accountable, and focused on delivering the best services for the industry.

According to Minister Agus, the robust performance of the national manufacturing sector must be supported by improved services and bureaucracy within Kemenperin. As such, every head of work units within the ministry is required to enhance budget performance, emphasizing risk management and more efficient procurement processes.

“I have set a target for budget absorption to reach 60% by September 2025, with procurement processes completed by June 2025,” he explained.

The minister also highlighted the importance of optimizing the use of the electronic catalog system for procurement. He instructed procurement officers (PPK) to plan and execute at least 30% of the 2025 procurement budget through the electronic catalog.

“The newly launched Version 6 of the electronic catalog is a breakthrough designed to optimize procurement, making it more efficient, transparent, and integrated with the Ministry of Finance’s SAKTI system. We must utilize this system to its fullest potential,” Minister Agus asserted.