{"id":6580,"date":"2026-04-20T14:00:31","date_gmt":"2026-04-20T07:00:31","guid":{"rendered":"https:\/\/investinasia.id\/blog\/?p=6580"},"modified":"2026-04-20T14:07:46","modified_gmt":"2026-04-20T07:07:46","slug":"major-industries-in-indonesia","status":"publish","type":"post","link":"https:\/\/investinasia.id\/blog\/major-industries-in-indonesia\/","title":{"rendered":"Major Industries in Indonesia: GDP Contribution and Sector Overview (2025 Data)"},"content":{"rendered":"

Indonesia’s economy is classified into 17 sectors by BPS (Statistics Indonesia). Based on the latest full-year data released February 5, 2026, the five largest; manufacturing, trade, agriculture, construction, and mining, account for 63.92% of the country’s total economic output.<\/p>\n

In 2025, Indonesia’s GDP reached IDR 23,821.1 trillion (roughly USD 1.4 trillion), with GDP per capita at USD 5,083. The economy grew 5.11% for the year, faster than the 5.03% recorded in 2024 and finishing with a strong Q4 at 5.39%, the quickest quarterly growth since Q3 2022. The government’s 5.2% target was just missed, but the direction was clearly upward.<\/p>\n

If you’re researching Indonesia as a business destination or trying to understand which sectors actually drive this economy, this breakdown covers all 17 industries with the most current BPS figures available.<\/p>\n

Also Read:<\/strong> 10 Essential Things About Business Culture in Indonesia<\/a><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Sector<\/th>\nGDP Share (2025)<\/th>\nFull-Year Growth<\/th>\n<\/tr>\n<\/thead>\n
Manufacturing<\/td>\n19.07%<\/td>\n+5.30%<\/td>\n<\/tr>\n
Wholesale and Retail Trade<\/td>\n13.17%<\/td>\n+5.49%<\/td>\n<\/tr>\n
Agriculture, Forestry and Fishing<\/td>\n13.10%<\/td>\nStrong recovery<\/td>\n<\/tr>\n
Construction<\/td>\n9.83%<\/td>\nPositive<\/td>\n<\/tr>\n
Mining and Quarrying<\/td>\n8.75%<\/td>\n-0.66%<\/td>\n<\/tr>\n
Transportation and Storage<\/td>\n~6%<\/td>\n+8.87%<\/td>\n<\/tr>\n
Information and Communication<\/td>\n~4.5%<\/td>\n+7%+<\/td>\n<\/tr>\n
Financial and Insurance Activities<\/td>\n~4.2%<\/td>\n+6%+<\/td>\n<\/tr>\n
Public Administration and Defense<\/td>\n~2.9%<\/td>\nStable<\/td>\n<\/tr>\n
Education<\/td>\n~2.8%<\/td>\n+10.59% (Q3)<\/td>\n<\/tr>\n
Accommodation and Food Service<\/td>\n~2.5%<\/td>\nPositive<\/td>\n<\/tr>\n
Real Estate<\/td>\n~2.4%<\/td>\nStable<\/td>\n<\/tr>\n
Other Service Activities<\/td>\n~2%<\/td>\n+9.93%<\/td>\n<\/tr>\n
Business Services<\/td>\n~1.8%<\/td>\n+9.01%<\/td>\n<\/tr>\n
Human Health and Social Work<\/td>\n~1.2%<\/td>\nStable<\/td>\n<\/tr>\n
Electricity and Gas<\/td>\n~1%<\/td>\nPositive<\/td>\n<\/tr>\n
Water Supply and Waste Management<\/td>\n~0.07%<\/td>\nStable<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Source: BPS-Statistics Indonesia, Full-Year 2025 Economic Release (February 5, 2026). Sector share figures for the top 5 sectors are from BPS official data. Remaining sectors are estimates based on BPS classification framework and quarterly data. Growth rates are full-year c-to-c unless noted.<\/p>\n

1. Manufacturing (19.07%)<\/h2>\n

Manufacturing is Indonesia’s largest sector and has been for years. Its 2025 GDP share of 19.07% is the highest it has been in recent years, up from 18.98% in 2024 and 18.67% in 2023. The sector grew 5.30% in 2025, and food and beverage manufacturing specifically grew 6.15% in Q2 alone, driven by palm oil product exports, cooking oil, and processed food demand.<\/p>\n

The sector spans 24 KBLI sub-sectors. Food and beverages sit at the top. Textiles, chemicals, electronics, automotive parts, and metal processing fill out the rest. In Q1 2025, BPS Head Amalia Adininggar Widyasanti specifically cited solid performance in food and beverage manufacturing as a key growth driver alongside transportation services.<\/p>\n

The nickel downstreaming story continued to shape the sector in 2025. Indonesia accounts for around 58% of global nickel mine output and opened Southeast Asia’s first EV battery cell plant in 2024, a USD 1.1 billion Hyundai-LG joint venture in Karawang, West Java. The Making Indonesia 4.0 roadmap, which targets Industry 4.0 adoption in food, textiles, automotive, and electronics, is the long-term policy backdrop for manufacturing’s continued dominance.<\/p>\n

Foreign investment in manufacturing remains by far the largest FDI category. If you’re considering entering Indonesia through the industrial sector, this manufacturing industry overview<\/a> covers the sector’s structure, KBLI options, and current foreign investment landscape in detail.<\/p>\n

Also Read:<\/strong> Indonesia Textile Industry: Outlook and Opportunities<\/a><\/p>\n

2. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles (13.17%)<\/h2>\n

Trade is second at 13.17% of GDP in 2025, up from 13.07% in 2024. The sector grew 5.49% for the full year, making it one of the stronger performers among the major sectors. BPS formally designated trade as the second-largest contributor to national GDP in both 2024 and 2025.<\/p>\n

This classification covers everything from large hypermarkets and department stores to neighborhood warungs, plus the motor vehicle and motorcycle repair services bundled in under BPS’s categorization. Indonesia has one of Asia’s largest two-wheel vehicle fleets, so that repair component is not incidental.<\/p>\n

E-commerce has continued reshaping the sector. Platforms like Tokopedia, Shopee, and Lazada have pulled a larger share of consumer spending online, and this has pushed foreign retail and logistics companies to enter through hybrid models. The revised Positive Investment List has opened more sub-sectors to foreign ownership, which changes the entry calculus for international retailers.<\/p>\n

3. Agriculture, Forestry, and Fishing (13.10%)<\/h2>\n

Agriculture’s 2025 data is the most interesting shift in this year’s BPS numbers. The sector rebounded sharply, after growing only 0.67% in 2024, it expanded 10.52% in Q1 2025 alone. That was its highest quarterly growth in recent years. BPS attributed the turnaround to a 51.45% rise in rice production and a 39.02% jump in maize output, boosted by Ramadan and Eid demand and better harvests. By Q2 2025, agriculture’s GDP share had climbed to 13.83%.<\/p>\n

For the full year, agriculture settled at 13.1% of GDP, putting it in a close third place, essentially tied with trade in structural importance. That’s a meaningful change from recent years, when the sector was further behind.<\/p>\n

Palm oil drives the export side. Indonesia produces roughly 60% of global supply and has been the world’s largest palm oil exporter for decades. The palm oil industry guide<\/a> and the broader Indonesia agriculture sector overview<\/a> are worth reading before considering agribusiness entry.<\/p>\n

Forestry falls under a separate regulatory framework through KLHK (Ministry of Environment and Forestry), and the sustainability requirements under RPJPN 2025-2045 add compliance complexity. The forestry industry overview<\/a> covers the current licensing situation.<\/p>\n

4. Construction (9.83%)<\/h2>\n

Construction is fourth at 9.83% of GDP, slightly down from 9.9% in 2024 as the pace of government infrastructure spending normalized under the Prabowo administration’s adjusted budget priorities. That said, the sector posted positive growth throughout 2025, including a 1.85% q-o-q rebound in Q3.<\/p>\n

The government built over 2,200 kilometers of toll roads and 27 new airports between 2015 and 2024. The Nusantara new capital city project in East Kalimantan is still the single largest ongoing construction commitment, nearly 150,000 people now live there according to BPS, and infrastructure investment will continue through the late 2020s.<\/p>\n

Foreign investors can participate in construction through PT PMA structures in specific sub-sectors: civil engineering, specialized construction, and integrated property development. The Indonesia construction industry guide<\/a> lists the relevant KBLI codes and foreign ownership conditions.<\/p>\n

5. Mining and Quarrying (8.75%)<\/h2>\n
\"Major
Major Industries in Indonesia (source:pexels)<\/figcaption><\/figure>\n

Mining is fifth at 8.75% of GDP in 2025, and the only sector in the entire BPS classification to contract that year, falling 0.66%. That contraction happened across softer commodity output and falling prices, particularly in nickel.<\/p>\n

This is worth sitting with for a moment. Mining has historically been one of Indonesia’s most economically significant sectors, and its slide from around 10-11% of GDP in recent years to 8.75% reflects real structural pressure, not just a quarterly blip. Nickel prices collapsed from over USD 100,000 per tonne in March 2022 to USD 16,000-18,000 by late 2024, and that repricing has worked through the sector’s economics.<\/p>\n

The broader downstreaming story remains strategically relevant. Indonesia still holds 58% of global nickel mine output and has built out ferronickel, nickel pig iron, and mixed hydroxide precipitate (MHP) processing capacity at industrial parks in Sulawesi and Maluku. But the easy phase of that story, build the smelters, capture the value, is over. The harder question now is how to compete in high-grade nickel for EV batteries against Chinese-controlled refining capacity that dominates the midstream.<\/p>\n

Coal is still Indonesia’s largest commodity export by volume. Asian demand from India and China has kept it economically relevant through 2025, despite Western decarbonization pressure.<\/p>\n

For investors: the mining industry overview<\/a> and the nickel sector guide<\/a> cover current licensing requirements and the recent regulatory shifts around royalty structures.<\/p>\n

\n

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6. Transportation and Storage (~6%)<\/h2>\n

Transportation and storage grew 8.87% in 2025, the second-fastest full-year rate in the economy, behind only Other Services. In Q4 specifically, it was the single fastest-growing sector at 8.98%. That’s not a one-quarter story; it held near the top of the growth table across all four quarters.<\/p>\n

The drivers are logistics demand from e-commerce, post-pandemic air travel recovery, and continued port infrastructure improvement. Indonesia’s archipelagic geography makes logistics permanently challenging and permanently in demand. Cold chain, last-mile delivery to secondary cities, and maritime freight are sub-sectors where the gap between demand and capacity remains large. Foreign logistics companies have been entering through PT PMA structures in warehousing and freight forwarding.<\/p>\n

FDI data from Q1 2025 shows that transportation, warehousing, and telecommunications attracted the second-largest share of foreign investment inflows after mining and metals, at a significant portion of the USD 13.67 billion total.<\/p>\n

7. Information and Communication (~4.5%)<\/h2>\n

ICT grew around 7.42% in Q3 2025, and BPS Head Amalia specifically cited the sector as reflecting “the increasing role of digitalization in the national economy” in the Q1 2025 press briefing. That kind of language doesn’t usually appear in statistical releases without reason.<\/p>\n

Indonesia’s digital economy was projected to reach USD 130-146 billion in 2025. Smartphone adoption across secondary cities continues rising. 4G coverage is effectively national; 5G rollout is ongoing in Jakarta, Surabaya, and Bali. The ICT sector’s GDP share is still relatively modest at around 4.5%, but its influence on trade, financial services, and logistics is larger than that number suggests.<\/p>\n

For foreign tech investors, the practical entry questions are about KBLI activity classification and local partnership requirements. The telecom industry overview<\/a> and the semiconductor sector guide<\/a> cover the entry landscape for technology-focused companies.<\/p>\n

8. Financial and Insurance Activities (~4.2%)<\/h2>\n

The financial sector grew around 6.21% through Q3 2025, one of the stronger service sector performances and above the overall economy’s growth rate. Banking, insurance, capital markets, and investment management collectively sit at around 4.2% of GDP, regulated by OJK (Otoritas Jasa Keuangan) and Bank Indonesia.<\/p>\n

Foreign participation rules have loosened over the past decade, but this is still one of the more controlled sectors. The more open entry point is fintech, over 100 licensed fintech companies were operating in payments, lending, and investment platforms in Indonesia by 2024, serving a large population that remains partially underserved by traditional banking.<\/p>\n

The insurance industry overview<\/a> covers OJK licensing and foreign ownership requirements in detail.<\/p>\n

9. Public Administration, Defense, and Compulsory Social Security (~2.9%)<\/h2>\n

This covers government agencies, the Indonesian National Armed Forces (TNI), the National Police (Polri), and compulsory social insurance programs including BPJS Ketenagakerjaan and BPJS Kesehatan. It’s entirely state-run. Private investment in this sector is not applicable, but BPJS compliance is a legal obligation for every company that employs staff in Indonesia, foreign or domestic.<\/p>\n

10. Education (~2.8%)<\/h2>\n
\"Major
Major Industries in Indonesia (source:pexels)<\/figcaption><\/figure>\n

Education is worth flagging in 2025 because Q3 data showed it growing 10.59% year-on-year, the fastest of any sector that quarter. That spike likely reflects delayed enrollment recovery and government spending on vocational and higher education programs under the RPJPN 2025-2045 human capital agenda.<\/p>\n

Private and international education businesses can operate in Indonesia, typically requiring local partnership depending on the sub-sector. EdTech is the most accessible entry point, with several foreign-backed platforms already operating at scale in the market.<\/p>\n

11. Accommodation and Food Service Activities (~2.5%)<\/h2>\n

Hospitality continued recovering in 2025. European visitors were the highest-spending foreign tourists in Indonesia in 2025, averaging nearly USD 1,917 per trip according to BPS data. Hotel occupancy in Bali, Jakarta, and Lombok has normalized post-pandemic, and new hospitality investment is tracking toward Kalimantan alongside the new capital city development.<\/p>\n

Hotels, restaurants, and tourism services are open to PT PMA with relatively clear entry conditions, and Indonesia’s long-term tourism targets continue to create new investment demand in this space.<\/p>\n

12. Real Estate Activities (~2.4%)<\/h2>\n

Real estate covers property development, residential and commercial sales, and rental activity. The underlying demand driver is urbanization, Indonesia’s urban population share keeps rising, with around 60% of residents projected to live in cities by 2035.<\/p>\n

The ownership rules matter for foreign investors. Foreign nationals cannot hold Hak Milik (freehold) title. Hak Pakai (Right to Use) is available for residential property, and PT PMA structures enable commercial development. Jakarta, Bali, and Batam remain the three most active markets for foreign real estate involvement.<\/p>\n

13. Other Service Activities (~2%)<\/h2>\n

This is the catch-all category, hair salons, repair shops, laundromats, membership organizations, and it led all 17 sectors in full-year 2025 growth at 9.93%. That’s two consecutive years at the top of the growth table: 9.80% in 2024, 9.93% in 2025.<\/p>\n

The read on that is fairly simple. Consumer service spending in Indonesia was suppressed during 2020-2022 and has been releasing steadily since. Urban Indonesians are spending more on personal and community services, and the sector’s small base means even moderate absolute increases show up as large percentage growth.<\/p>\n

14. Business Services (~1.8%)<\/h2>\n

Business services, accounting, legal, consulting, market research, management advisory, grew 9.01% in 2025, the second-fastest full-year rate in the economy. The connection to increased foreign investment activity and regulatory complexity is direct. As more companies enter Indonesia, demand for professional support services rises with them.<\/p>\n

For foreign companies specifically: the cost of getting business setup wrong in Indonesia, through improper entity structure, missing licenses, or tax non-compliance, is real. Professional guidance before you start trading is not overhead; it’s risk management.<\/p>\n

15. Human Health and Social Work Activities (~1.2%)<\/h2>\n
\"Major
Major Industries in Indonesia (source:pexels)<\/figcaption><\/figure>\n

Healthcare contributes around 1.2% to GDP, which is small relative to the sector’s social importance and actual demand. Indonesia is expanding universal healthcare coverage through BPJS Kesehatan, and the gap between stated capacity targets and current delivery is visible in both urban and rural contexts.<\/p>\n

Medical tourism is emerging in Bali and Batam. Foreign investors can operate hospitals, specialist clinics, and medical device distribution through PT PMA under Ministry of Health licensing. Indonesia’s creative economy, which BPS now tracks separately, employed 27.4 million workers in 2025, 18.7% of the national workforce. That adjacent economic activity includes some health and wellness services that sit near this classification.<\/p>\n

16. Electricity and Gas (~1%)<\/h2>\n

PLN runs the national grid. Private power generation through Independent Power Producers is permitted and growing, particularly in renewable energy. Indonesia has committed to 23% renewable energy in its mix by 2025 and net zero by 2060, and the government’s renewable energy targets create a defined pipeline for project investment.<\/p>\n

Solar, geothermal, and hydropower are the priority technologies. In Q3 2025, Electricity and Gas was actually the fastest-growing sector on a quarter-to-quarter basis at +5.42%, reflecting infrastructure expansion and rising industrial power demand. The regulatory path for IPP investment is clearer than it was five years ago, though grid connection timelines remain a practical bottleneck.<\/p>\n

17. Water Supply, Sewerage, Waste Management, and Remediation (~0.07%)<\/h2>\n

The smallest sector by GDP share, but one with structural demand that keeps growing as Indonesia’s cities expand faster than infrastructure. The investment gap in water and sanitation is visible and acknowledged by the government. Foreign investors can participate through PT PMA structures, typically in partnership with regional water utilities (PDAM).<\/p>\n

What the 2025 Numbers Actually Tell You<\/h2>\n

A few things stand out from this year’s data that weren’t as clear before.<\/p>\n

Agriculture’s recovery is real and significant. It went from near-stagnation in 2024 to one of the fastest-growing sectors in Q1 and Q2 2025. Whether that holds or partially reverses depends on harvest conditions in 2026, but the structural food demand driving it is permanent.<\/p>\n

Mining’s contraction is the clearest warning sign in the data. It’s the only sector that shrank in 2025, and the reasons, commodity price cycles, over-dependence on Chinese nickel demand, environmental pressure from international buyers, are not going away quickly. Investors interested in mining need a longer time horizon and a more specific thesis than “Indonesia has nickel.”<\/p>\n

Services are punching above their weight in growth. Transportation, business services, and other services all grew faster than manufacturing or trade in 2025. That reflects both post-pandemic normalization and genuine structural shifts in how the economy is operating. For foreign investors in professional services, logistics, and digital sectors, the growth data is more favorable than the GDP share numbers alone would suggest.<\/p>\n

The sector-level data only gets you so far. The practical question is which sectors are open to your specific business structure and activity under Indonesia’s investment rules. The Positive Investment List<\/a> maps which KBLI codes are fully open to PT PMA, which require local partnership, and which are restricted. That’s the filter you need to apply before sector analysis translates into actual market entry planning.<\/p>\n

Also Read:<\/strong> Indonesia Negative Investment List (DNI): Latest Update<\/a><\/p>\n

\n

Ready to Register Your Company in Indonesia?<\/p>\n

Talk to our consultants about your sector, your ownership structure, and how to get started legally, without the paperwork headache.<\/p>\n

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Frequently Asked Questions<\/h2>\n

What is the largest industry in Indonesia by GDP contribution?<\/h3>\n

Manufacturing, at 19.07% of GDP in 2025. That’s the highest share it has recorded in recent years. It is followed by wholesale and retail trade (13.17%) and agriculture, forestry, and fishing (13.10%), according to BPS full-year data released February 5, 2026.<\/p>\n

What is Indonesia’s GDP in 2025?<\/h3>\n

IDR 23,821.1 trillion at current market prices, equivalent to roughly USD 1.4 trillion. GDP per capita reached USD 5,083. Full-year growth was 5.11%, an improvement on the 5.03% recorded in 2024 and the strongest Q4 reading (5.39%) since Q3 2022.<\/p>\n

Which industries in Indonesia grew the fastest in 2025?<\/h3>\n

Other Services Activities led the full year at 9.93% growth. Business Services came second at 9.01%, and Transportation and Storage followed at 8.87%. Education posted 10.59% growth in Q3 specifically. Mining was the only sector to record negative growth at -0.66%.<\/p>\n

Why did agriculture’s share of GDP increase in 2025?<\/h3>\n

Agriculture rebounded sharply in 2025 after a weak 2024. In Q1 2025, the sector grew 10.52% year-on-year, driven by a 51.45% rise in rice production and 39.02% rise in maize output, boosted by strong Ramadan and Eid demand and better harvest conditions. The sector’s full-year GDP share rose to 13.10%, up from 12.61% in 2024.<\/p>\n

Which Indonesian industries are most open to foreign investors?<\/h3>\n

Manufacturing, wholesale trade, technology, logistics, tourism, and professional services are among the most accessible for PT PMA (foreign-owned company) registration. The Indonesia Positive Investment List specifies which KBLI codes allow 100% foreign ownership and which require a local partner. That list is the right starting point before any sector analysis.<\/p>\n

What happened to Indonesia’s mining sector in 2025?<\/h3>\n

Mining contracted 0.66% in 2025, the only sector in BPS’s 17-sector classification to record negative growth that year. The contraction reflects softer commodity prices, particularly nickel, declining output volumes, and reduced demand from China, which imports the vast majority of Indonesia’s processed nickel. Mining’s GDP share also fell to 8.75% in 2025, down from around 10% in recent years.<\/p>\n

 <\/p>\n

References<\/strong><\/p>\n

1. BPS-Statistics Indonesia. (2026, February 5). Indonesia’s Economic Growth in 2025 was 5.11 Percent.
\nhttps:\/\/www.bps.go.id\/en\/pressrelease\/2026\/02\/05\/2546\/indonesia-s-economic-growth-in-2025-was-5-11-percent.html<\/p>\n

2. BPS-Statistics Indonesia. (2025, May 5). Indonesia’s Economy Sustains Growth Amid Global Uncertainty (Q1 2025 release).
\nhttps:\/\/www.bps.go.id\/en\/news\/2025\/05\/05\/703\/ekonomi-indonesia-tetap-tumbuh-di-tengah-ketidakpastian-global.html<\/p>\n

3. BPS-Statistics Indonesia. (2025, November 5). Indonesia’s Economic Growth in Q3-2025 was 5.04 Percent.
\nhttps:\/\/www.bps.go.id\/en\/pressrelease\/2025\/11\/05\/2478\/indonesia-s-economic-growth-in-q3-2025-was-5-04-percent–y-on-y-.html<\/p>\n

4. Business Indonesia. (2026, February 5). BPS Records Indonesia’s Economic Growth at 5.11% in 2025.
\nhttps:\/\/business-indonesia.org\/news\/bps-records-indonesia-s-economic-growth-at-5-11-in-2025<\/p>\n

5. McKinsey. (2026). Southeast Asia Quarterly Economic Review: Q4 2025.
\nhttps:\/\/www.mckinsey.com\/featured-insights\/future-of-asia\/southeast-asia-quarterly-economic-review<\/p>\n

 <\/p>\n