Indonesia’s metal, machinery, transport equipment, and electronics (ILMATE) sector is showing robust growth, driven by government stimulus and rising industrial investment, according to the Indonesian National Importers Association (GINSI).
Erwin Taufan, GINSI Deputy Chairman said on Tuesday that sustained momentum in the ILMATE sector is essential to underpin the broader manufacturing industry and national economic output.
“As industry players, we are committed to working with the government to sustain and strengthen growth in this strategic sector,” Taufan said in a statement.
The ILMATE industry plays a critical role in the manufacturing supply chain, processing raw and semi-finished materials into finished goods, he added.
To support industrial development, the government has continued to implement fiscal incentives, including a long-standing import duty exemption under Minister of Finance Regulation No. 176/PMK.011/2009. The policy allows duty-free imports of machinery and industrial inputs for investment and expansion projects.
GINSI said the policy has helped attract fresh domestic investment and accelerate capacity building in key subsectors.
Official data from the Ministry of Industry showed that ILMATE posted annual gross domestic product (GDP) growth of 5.19% in the first half of 2025, up from 4.89% in the same period last year.
The machinery and equipment segment led the expansion, surging 18.75% — the sector’s strongest growth since 2012.
The gains are partly attributed to a 30.37% increase in government capital spending and pro-industry fiscal measures aimed at spurring domestic manufacturing.