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TEMPO.CO, Jakarta - The Minister of Industry, Agus Gumiwang Kartasasmita, revealed that Indonesia's manufacturing industry has grown by 4.94 percent in the past year. But this growth is colored with structural challenges that caused Indonesia's global competitiveness to lag behind.Agus Gumiwang cited the World Competitiveness Ranking survey released by the International Institute for Management Development (IMD). Indonesia's competitiveness is ranked 40th globally this year, a significant drop from 27th in 2024. "The previous achievements are difficult to maintain," said Agus Gumiwang during a press conference in Jakarta on Monday, October 20, 2025.IMD measures a country's global competitiveness through four main pillars: economic performance, government efficiency, business efficiency, and infrastructure. Agus mentioned that Indonesia's previous ranking was supported by policy reforms and bureaucratic improvements.However, in 2025, Agus Gumiwang noted a decline in the Health and Environment subsector to 63rd place and the institutional framework to 51st place, as well as other supporting subsectors.This year, the minister said Indonesia records positive performance in the business efficiency subsector, especially in the labor market framework, where Indonesia is ranked 10th. "This shows a contrasting situation. The business environment's ranking is already quite good and respectable, but the quality of other main foundations still needs to be pursued," said the Minister of Industry.Agus Gumiwang also explained the investment achievement from the manufacturing sector in the past year. He mentioned that the figure reached Rp568.4 trillion, equivalent to 40.72 percent of the total national investment. According to Agus, this figure created 19.44 million job absorptions, accounting for 13.41 percent of the total national job absorptions.Indonesia's Competitiveness Rankings in the Last 5 Years2020: 40th place2021: 37th place2022: 44th place2023: 34th place2024: 27th place2025: 40th placeEditor’s Choice: Indonesia to Tap Carbon's Economic Value as New Revenue SourceClick here to get the latest news updates from Tempo on Google News
