<![CDATA[The industrial sector plays a strategic role as a key driver of economic development through increased productivity, job creation, and strengthening the export base. This study aims to analyze the industrial sector's contribution to Indonesia's economic development by emphasizing its determinants of success and limitations. The method used is a literature study enriched with descriptive-comparative quantitative analysis using secondary data from 2015–2024 sourced from the Central Bureau of Statistics and the World Bank. This approach was chosen because the research objective was not only to explain the theoretical concept regarding the relationship between the industrial sector and economic development, but also to examine the latest empirical evidence. The results indicate that the determinants of industrial performance include physical capital, human capital, the quality of institutions and policies, technology transfer and knowledge spillover, market structure and trade orientation, inter-sectoral linkages, financial capacity, and digital infrastructure. Each factor has advantages and disadvantages that have implications for the effectiveness of industry's role in development. Overall, the industrial sector has been shown to contribute significantly to Indonesia's economic growth through job creation, increased productivity and innovation, and strengthened investment and exports. These findings emphasize the importance of adaptive industrial policies to address the challenges of early deindustrialization and digital transformation. Empirical studies show that the industrial sector continues to play a significant role in Indonesia's economic development from 2015 to 2024. Industry contributes significantly to economic growth and job creation, despite facing global automation trends.]]>
Copyrights © 2026
