Leading Industries That Thrive in Indonesia


Indonesia is a country with an abundance of natural resources, a labour force of 133.4 million people, and political stability. It is also one of the biggest economies in the world. Many private citizens and foreign investors incorporate in Indonesia, and they control a huge sector of the country’s economy.

What are the lead industries that contributed to the development of the country’s economy? Here is an outline of the biggest industries in Indonesia.

Agriculture, Forestry, and Fishery

Agriculture is among the key industries in Indonesia. This sector provides employment to a huge percentage of individuals in the country. In 2012, the industry provided jobs to around 49 million citizens and contributed 14.4% to the GDP.

Indonesia uses 30% of its land for agriculture. The lands owned and used by the government and private companies are mostly used for larger plantations for exports. Meanwhile, the others are owned by small entities and households that provide for the local food demand.

Moreover, livestock, forestry and fishery are increasingly becoming important to the country. Milkfish and shrimps are bred through aquaculture and exported abroad. Plywood and veneer are also exported mainly from Kalimantan and Papua.


Indonesia holds the title of having the largest market for tin. And other than tin, the country also extracts silver, coal, and bauxite. Currently, the government is planning on the expansion of its mining industry to gold, copper, and nickel. The country has attracted foreign investors in this sector from China, India, Russia, and South Korea.

Motorcycle and Automotives

Indonesia is also a lead producer of motorcycles. In 2010, it earned 7.6 million on motorcycles manufactured by Honda and Yamaha in the country. It is important to note that the components used to produce these vehicles are also locally made.

Further, Indonesia also leads to the production of automobiles in Southeast Asia. In 2014, the total export of vehicle units was around 22.5% of the overall production. And in 2017, a total of 1.2 million water vehicles were produced that placed the country 18th in the global ranking of the vehicle producer.

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