Eastern Indonesia's manufacturing growth exceeds national rate
Four provinces recorded average annual growth of 18.21 per cent in real terms between 2021 and 2025, against 5.17 per cent nationally.
Manufacturing output in Indonesia's Eastern Sub-Region II reached Rp149.41 trillion in 2025, up from Rp64.61 trillion in 2021, according to the Industry Ministry. The ministry identified downstream processing of minerals and other natural resources as the main driver of the expansion.
The sub-region covers North Maluku, Southeast Sulawesi, North Sulawesi and West Papua. Its manufacturing sector more than doubled over the period, with average annual growth in real terms exceeding the national rate.
Among the four provinces, North Maluku posted the fastest manufacturing growth in 2025 at 62.64 per cent, ranking second nationally after West Nusa Tenggara. Southeast Sulawesi placed fifth with 14.91 per cent, while North Sulawesi ranked ninth at 9.97 per cent and West Papua eleventh at 9.04 per cent.
The ministry's figures showed that each province contributed a relatively small share of national manufacturing output in 2025: 1.01 per cent for North Maluku, 0.59 per cent for West Papua, 0.41 per cent for North Sulawesi and 0.38 per cent for Southeast Sulawesi.
Production remained concentrated in Central and South Halmahera, Bintuni Bay and Konawe. North Sulawesi's industrial activity was more varied, with Bitung serving as a centre for processing agricultural and fishery products.
Industry Minister Muhammad Sarmuji said employment, domestic value added, local business development and public welfare should be measures of industrial progress. Ministry director general Tri Supondy called for stronger links between industrial networks and rural communities, small and medium industries, cooperatives and local suppliers. He highlighted village-level commodity processing and cooperative clusters spanning several villages.
