Indonesia Manufacturing Sector

Manufacturing

Overview of the Manufacturing Sector

An introduction to the manufacturing sector of Indonesia and the main industries involved in it. This section provides an overview to the trends impacting the industry and recent changes that have taken place to shape its course of development such as the CAFTA.

Indonesia's Furniture and Homeware Sector

Indonesia has an established reputation within the furniture and handicrafts sector within the regional and global market due to the country’s strong historical traditions in woodwork and artistic crafts such as batik. This article looks at some of the key trends and business opportunities in the sector.

Indonesia’s Electronics and Home Appliances Sector

Indonesia’s domestic market for electronics has been showing a broad upward trend for the past decade in line with improved per capita purchasing power and greater consumer sophistication. This section looks at the changes in consumer habits and the main players in the industry.

Indonesia’s Plastic and Packaging Industry

Indonesia has a well developed upstream and downstream plastic industry with promising potential, yet a reliance on imported raw materials has somewhat held back the sector’s potential on a global scale. This section examines the challenges and opportunities of the sector.

Indonesia’s Garment and Apparel Sector

The last two years have seen a strong recovery in Indonesia’s garment sector with rising consumer purchasing power resulting in increased opportunities for premium and greater added value products. This section looks at the key trends shaping the industry.

Overview of Fibre, Textiles & Garments

An outline of some of the main trends in Indonesia’s fibre, textile and garment industry. As the global economy recovers and demand from emerging markets within the ASEAN increases, this section looks at Indonesia’s standing in terms of both exports and domestic consumption.

Challenges in Indonesia’s FTG Industry

While being one of Indonesia’s oldest industries, the country’s FTG producers have found it difficult to maintain a competitive edge. This section covers some of the challenges being faced by the sector in a context of intensified regional and global competition.

Overview of the Pharmaceutical Sector

The value of Indonesia’s pharmaceutical market remains low considering the size of the population providing plenty of scope for future growth. This section looks at the characteristics of the sector and trends among Indonesian consumers.

Opportunities in the Pharmaceutical Sector

Indonesia’s vast domestic market and positioning as the largest economy within the ASEAN make it an attractive option for pharmaceutical producers seeking to tap into the region. This section looks at some the main developments and regulations governing investment in the sector.

Automotive Industry: Driving Manufacturing

The automotive sector has become a major driver of the economy for both sales and manufacturing. Poised to become the largest car market in the ASEAN, car manufacturers have stepped up their capacity and may see Indonesia positioned as a regional and global hub.

Overview of the Food & Beverage Sector

The food and beverage sector is one of the fastest growing subsectors in Indonesia’s manufacturing industry due to increased consumer spending and changing lifestyles. This section looks at the interaction between local and multinational players as well as consumer habits.

Indonesia Manufacturing Snapshot

Contribution to GDP: 24.2% (2011, Non Oil & Gas)
Real Sector Growth: 6.6% (2010-2011)
Number Employed in the Sector: 15 million
Average Employee Salary: 1,369,000 RP/month (Q1 2012)
Main areas: Automotives, Electronics, Textiles, Footwear, Food & Beverage, Palm Oils, Metal Products, Chemicals
Main Export Markets: China, Japan, USA, India, Singapore, Malaysia, EU.