Overview

Indonesia’s manufacturing sector remains one of the country’s economic backbones. Unfortunately, though, the country is currently navigating a period of mixed signals. On the one hand, there is undoubtedly solid structural weight within the economy. However, pockets of stagnation, supply-chain disruption and regulatory friction persist and are materially affecting business operations and investment decisions. Manufacturing contributes around 19% to Indonesia’s GDP, making it one of the country’s most critical non-commodity sectors,^[1] and encompasses both large companies and a vast span of smaller operations, particularly the country’s many micro-, small- and medium-scale enterprises (MSMEs).