Indonesia in the Top 10 Manufacturing Nations, with Potential to Surpass Developed Ones

manufacturing sector in Indonesia

The global landscape of manufacturing remains under the prominent influence of Asian nations, including but not limited to China, Japan, South Korea, India, and Indonesia. Their pivotal roles are underpinned by the substantial value they add to the global Gross Domestic Product (GDP), marking their significance in the world economy.

Drawing insights from data provided by the World Bank, the total value added by the global manufacturing sector reached an impressive $16.33 trillion in the year 2022, marking an increase from the previous year, when it stood at $15.96 trillion.

Standing at the forefront of this sector prowess is China, which stands as the unrivaled titan, contributing a staggering 28.7 percent of the world’s manufacturing value-added, translating to a remarkable $4.9 trillion. China’s ascendancy to the throne of global manufacturing began in 2015 when it superseded the United States in this regard.

Indonesia, on the other hand, made its debut in the top 10 manufacturing countries back in 2015, with a notable value of $229.66 billion, contributing a respectable 1.93 percent. In the current landscape of 2022, Indonesia continues to maintain its place among the top 10, despite a slight dip in its contribution. Specifically, Indonesia’s manufacturing value-added for 2022 amounted to $241.8 billion, constituting 1.6 percent of the total global value-added.

Let us delve into a more comprehensive breakdown of the top 10 Manufacturing Countries in the World:

  1. China: With an astonishing population of 1.4 billion, China’s economic prowess, entrepreneurial spirit, and strategic location have solidified its position as the world’s manufacturing epicenter. The country’s output stands at an awe-inspiring $4.9 trillion, comprising a substantial 28.7 percent of the global manufacturing landscape.
  2. United States: This sector plays a pivotal role in the United States, contributing 11.6 percent to its GDP. On a global scale, the United States accounts for 16.8 percent, equivalent to $2.4 trillion, of the total global manufacturing value-added.
  3. Japan: Japan boasts a spectrum of major exports, encompassing consumer electronics, automobiles, and a range of metals including iron, steel, copper, and semiconductors. In the third position, Japan’s contribution amounts to 7.5 percent, or a noteworthy $1 trillion, of the world’s output in 2022.
  4. Germany: Germany’s economic landscape fosters free-market dynamics in both the business and consumer goods sectors, propelling it into the ranks of the top 10 manufacturing nations in recent years. As a leading manufacturing country in Europe, Germany’s contribution stands at 5.3 percent, amounting to $751 billion, of the total global value-added in 2022.
  5. India: With a populace exceeding 1.3 billion, India possesses an abundant workforce and resources that position it as a prospective frontrunner in global manufacturing. In the realm of manufacturing, India contributes 3.1 percent, equating to $450 billion, to the worldwide output in 2022.
  6. South Korea: South Korea strategically concentrates on technology-driven production, substantiating its capabilities by contributing a value of $426 billion, equivalent to 3 percent, to the total global value-added. South Korea’s primary exports span electrical equipment, vehicles, petroleum, spare parts, and vehicle accessories.
  7. Italy: Italy’s principal exports encompass metals and metal products, apparel, footwear, as well as motor vehicles. Italy’s manufacturing sector significantly contributes $283 billion, or 2.1 percent, to the global output in 2022.
  8. France: France holds the distinguished title of being the foremost agricultural producer in Europe, and it leads globally in the industrial energy sector. In this context, France contributes 1.9 percent, or $259.4 billion, to the overall global manufacturing value-added.
  9. United Kingdom: Boasting a populace exceeding 66 million, the United Kingdom serves as a major hub in the global economy. While manufacturing may not be its central focus, the UK generates $259.3 billion from this sector, contributing 1.8 percent to the global manufacturing landscape.
  10. Indonesia: Indonesia emerges as an exciting contender, characterized by momentum and growth potential that positions it to compete with advanced nations in the list of top manufacturing countries. In the year 2022, Indonesia’s contribution amounted to $241 billion, representing 1.6 percent of the global manufacturing output.

Indonesia’s primary exports encompass mineral fuels, mineral oils and their derivatives, mineral waxes, bituminous substances, animal or vegetable fats and oils. Notably, Indonesia is recognized as a formidable competitor alongside India and China in these commodity markets.