Indonesia is experiencing a significant increase in export-oriented manufacturing investment as companies recognize the country’s strategic advantages as a regional production hub. New manufacturing facilities announced in Q1 2025 represent over $3.2 billion in foreign direct investment specifically targeting export markets.
This trend is driven by Indonesia’s combination of competitive production costs, improving logistics infrastructure, expanding free trade agreement network, and strategic location within major Asian shipping lanes. Particularly active sectors include electronics, automotive components, processed foods, and textiles.
The government has further accelerated this momentum by introducing enhanced incentives for export-oriented investments including tax holidays, import duty exemptions, and streamlined permitting processes for qualified projects.
“Indonesia offers a compelling alternative for companies seeking to diversify their Asian manufacturing footprint,” explains Bambang Sutrisno, Manufacturing Investment Director at ProSpace Indonesia. “Its combination of scale, stability, and strategic location creates significant competitive advantages for export-oriented operations.”
ProSpace Indonesia provides comprehensive support services for export-oriented manufacturing investments, including site selection, incentive structuring, and operational establishment.
For information on export-oriented manufacturing opportunities, contact ProSpace Indonesia at +62 877 8887 7678 or email info@prospaceindonesia.com. Follow @prospace.indonesia on Instagram for insights on Indonesia’s manufacturing landscape.