Major Industries in Indonesia (Based on Contribution to GDP)

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 industries in Indonesia that make it one of the most economically vibrant nations in Southeast Asia.

Also read: 10 Essential Things About Business Culture in Indonesia

The following is a list of the 17 biggest industries in Indonesia according to their contribution to GDP in 2022, based on the source Statista.com:

1. Manufacturing (18.34%)

   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 18.34% to the country’s GDP and employs a significant portion of the workforce.

   Also read: Indonesia Manufacturing Industry: Outlook and Opportunities

2. Wholesale and Retail Trade, Repair of Motor Vehicles, and Motorcycles (12.85%)

   The wholesale and retail trade sector, coupled with vehicle and motorcycle repair, constitutes another major industry in Indonesia. With a contribution of 12.85% to the GDP, it ranks among the top industries in Indonesia and is a significant source of employment.

3. Agriculture, Forestry, and Fishing (12.40%)

   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 12.40% to the GDP and employing a substantial workforce. (read: Top 10 Agriculture Companies in Indonesia)

   Also read:

   • Palm Oil Industry in Indonesia: Outlook and Opportunities
   • Indonesia Agriculture Industry: Outlook and Potential
   • Indonesia’s Paper Industry: Outlook and Opportunities

4. Mining and Quarrying (12.22%)

   

   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. (read: Top 10 Mining Companies in Indonesia)

   Also read:

   • Mining Industry in Indonesia: Outlook and Potential
   • Indonesia’s Coal Industry: Outlook and Potential

5. Construction (9.77%)

   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. (read: 10 Top Construction Companies in Indonesia)

   Also read: Indonesia Construction Industry: Outlook and Opportunities

6. Transportation and Storage (5.02%)

   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 (4.15%)

   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 (4.13%)

   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.

   Also read: Insurance Industry in Indonesia: Opportunities and Outlook

9. Public Administration, Defense, and Compulsory Social Security (3.09%)

   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 (2.89%)

    

    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. Real Estate Activities (2.49%)

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

12. Accommodation and Food Service Activities (2.41%)

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

13. Other Service Activities (1.81%)

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

    Also read: Clothing and Fashion Industry in Indonesia: Outlook and Potential

14. Business Services (1.74%)

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

    Also read: Top 10 Consulting Companies 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.

    Also read: What Products Are Most in Demand in Indonesia?

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.

Also read: FMCG Industry in Indonesia: Outlook and Opportunities

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.

Also read: The Types of Companies and Business Entities in Indonesia

However, the process of establishing a business in Indonesia involves several steps, including business registration, obtaining necessary licenses and permits, and complying with local regulations. To simplify the process and ensure compliance, it is advisable to seek professional assistance.

InvestinAsia is among the companies that specialize in aiding you with Indonesia incorporation services. We boast a team of seasoned experts who can guide you throughout the process of

• PMA / foreign company registration in Indonesia
• Indonesia representative office setup
• Virtual office rent in Indonesia
• Business registration number in Indonesia
• Business Licenses in Indonesia

If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.