Indonesia, renowned for its stunning natural beauty and cultural diversity, is also home to a diverse array of industries. In this article, we’ll take a deep dive into the major industries in Indonesia that make it one of the most economically vibrant nations in Southeast Asia.

Indonesia’s economy defied expectations in 2023, registering a robust 5.05% growth according to data from the Cabinet Secretariat of the Republic of Indonesia. This accomplishment surpasses forecasts and underscores the resilience of Southeast Asia’s largest economy.

The construction sector emerged as a key driver, expanding by a significant 7.68%. Manufacturing also played a crucial role, contributing a solid 4.07% increase. Buoyed by government initiatives like housing stimulus packages and social assistance programs, household consumption grew by a healthy 4.82%. These combined factors paint a positive picture for Indonesia’s economic performance in 2023.

To delve into Indonesia’s booming industries with high growth potential in 2024, we’ve compiled a list of the 17 biggest industries based on their contribution to GDP in 2023 (source: Statista.com).

1. Manufacturing (18.67%)

   When it comes to main industries in Indonesia, the manufacturing sector takes center stage. It encompasses a wide range of activities, including food and beverages, textiles, apparel, electronics, and chemicals. As the biggest industry in Indonesia, it contributes a staggering 18.67% to the country’s GDP and employs a significant portion of the workforce.

2. Wholesale and Retail Trade, Repair of Motor Vehicles, and Motorcycles (12.94%)

   The wholesale and retail trade sector, coupled with vehicle and motorcycle repair, constitutes another major industry in Indonesia. With a contribution of 12.94% to the GDP, it ranks among the top industries in Indonesia and is a significant source of employment.

3. Agriculture, Forestry, and Fishing (12.53%)

   Among the major industries in Indonesia, agriculture, forestry, and fishing hold a prominent position. This sector includes the cultivation of crops, livestock, and fish, contributing 12.53% to the GDP and employing a substantial workforce.

4. Mining and Quarrying (10.52%)

   

   Indonesia’s rich natural resources play a pivotal role in making mining and quarrying one of the main industries in Indonesia. It encompasses the extraction of coal, oil, gas, minerals, and other valuable resources, contributing significantly to the nation’s revenue.

5. Construction (9.92%)

   As a major industry in Indonesia, the construction sector is responsible for the development of infrastructure, including buildings, roads, and bridges. It ranks as the fifth-largest contributor to Indonesia’s GDP and offers ample employment opportunities.

6. Transportation and Storage (5.89%)

   The transportation and storage sector ensures the smooth movement of people and goods within Indonesia and to and from other countries. It encompasses various activities, such as air, sea, and land transportation, as well as warehousing and storage services.

7. Information and Communication (4.23%)

   Indonesia’s information and communication sector is a vital component of its modern economy, providing services like telecommunications, internet, and mobile phone services, along with content production and distribution.

8. Financial and Insurance Activities (4.16%)

   The financial and insurance sector delivers essential services to individuals and businesses, including banking, insurance, and investment management, contributing to the stability of Indonesia’s economy.

9. Public Administration, Defense, and Compulsory Social Security (2.95%)

   For efficient governance and security, public administration, defense, and compulsory social security are indispensable. This sector encompasses government agencies, the military, and the police.

10. Education (2.79%)

    

    Education is not only about nurturing minds but also a significant contributor to Indonesia’s economy. From primary to tertiary education, this sector ensures the development of the nation’s human capital.

11. Accommodation and Food Service Activities (2.52%)

    The accommodation and food service sector caters to both tourists and locals, comprising businesses such as hotels, restaurants, and cafes.

12. Real Estate Activities (2.42%)

    Real estate activities, including buying, selling, renting, and property development, make up a significant part of Indonesia’s economy.

13. Other Service Activities (1.94%)

    This sector encompasses a variety of service businesses, including hair salons, car repair shops, and laundromats, contributing to Indonesia’s diverse service industry.

14. Business Services (1.83%)

    Business services such as accounting, legal, and consulting play a pivotal role in supporting various industries in Indonesia.

15. Human Health and Social Work Activities (1.21%)

    

    The provision of healthcare and social services is paramount to the well-being of Indonesian citizens, making this sector an essential contributor to the nation’s welfare.

16. Electricity and Gas (1.04%)

    Ensuring a steady supply of electricity, gas, and utilities to businesses and individuals, this sector powers Indonesia’s growth.

17. Water Supply, Sewerage, Waste Management, and Remediation Activities (0.06%)

    Responsible for water supply, sanitation, waste management, and pollution control, this sector plays a crucial role in maintaining Indonesia’s environmental sustainability.

All these industries in Indonesia collectively form the pillars of its thriving economy. While manufacturing takes the lead as the biggest industry in Indonesia, each of these sectors contributes significantly to the nation’s prosperity.

Having learned the list above, are you now prepared to establish your own business in Indonesia?

With its vast natural resources and strategic location, Indonesia has emerged as one of the key players in the global business landscape. The country offers a diverse and dynamic market with a population of over 270 million, making it an attractive destination for both local and international businesses.