Jakarta. Indonesia is not experiencing deindustrialization, Industry Minister Muhammad Sarmuji said Tuesday, arguing that manufacturing continues to expand faster than the overall economy and remains a major contributor to national output.

Sarmuji said the industrial sector grew 5.3% in 2025, outpacing Indonesia's economic growth of 5.11%, adding that manufacturing currently accounts for approximately 19% of Indonesia's gross domestic product based on the latest data available to his ministry.

"In 2025, the industrial sector grew 5.3%, while the economy expanded 5.11%. These figures alone show that the industrial sector's contribution to GDP and overall economic growth remains highly significant," Sarmuji said after meeting representatives of B-Universe Media Holdings at his office in Jakarta.

He rejected suggestions that Indonesia's manufacturing sector was losing its importance in the economy, pointing to continued industrial expansion and efforts to increase domestic processing of natural resources.

"Some people out there perceive Indonesia as undergoing deindustrialization. But the actual data do not support that conclusion," he said.

The minister said Indonesia was expanding downstream processing activities in the mining and agricultural sectors to generate greater value from domestic resources and reduce reliance on exports of unprocessed commodities.

He also highlighted the performance of the country's industrial subsectors, saying 14 of the 15 subsectors recorded positive growth, while only one experienced a contraction.

"Only one subsector failed to grow, namely the industry related to mining and its supporting activities," Sarmuji said.

The minister urged the media to play a greater role in communicating accurate information about Indonesia's economic performance and development, arguing that public perceptions could be shaped by incomplete information.

He likened information to light that helps people understand the country's actual circumstances.

"If people see Indonesia as being in darkness, it means the light of information has not yet reached everyone," he said.

Sarmuji, a businessman and politician affiliated with the Golkar Party, was appointed industry minister on Oct. 1, replacing Agus Gumiwang Kartasasmita.

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