Many factors influence economic growth, one of which is the manufacturing industry.
In fact, in Indonesia, manufacturing is a major industry and the backbone of the Indonesian economy.
Its contribution to GDP (Q3 2025) stands at 17.39%, with most businesses operating on a medium or large scale. What exactly is this manufacturing industry?
Born Bold, Built to Scale: How HMNS Grows with OdooWhat is Manufacturing?
Manufacturing is the process of transforming raw materials into finished goods that can be used and have commercial value. Generally, the main focus of the manufacturing industry is innovation and efficiency.
Types of manufacturing industries & examples
The manufacturing industry consists of several types, including food and beverages, pharmaceuticals, chemicals, metals and machinery, textiles and clothing, automotive, and electronics, with production scales divided into small, medium, and large.
Examples of manufacturing companies in Indonesia are:
PT Indofood Sukses Makmur Tbk,
PT Astra International Tbk,
PT Krakatau Steel,`and many more companies that, on average, have their factory locations centered in Cikarang, West Java, Indonesia.
Five main stages of manufacturing
Planning, which includes market research, concept planning, design, and finalization of the production stage.
Procurement of raw materials.
Production, either manual or by machine.
Quality control
Distribution to the public
Challenges of the manufacturing industry
On a small or large scale, these are things that manufacturers often experience:
Economic conditions in Indonesia and global geopolitics somewhat influence the price of raw materials for production.
Poor inventory management, resulting in stock inaccuracies between the system and the physical quantity of goods, can be a source of crisis for a business. The main causes can be manual recording which leads to human error, an unintegrated system, or operations that were temporarily disrupted.
This crisis can affect production work. Especially if the production, purchasing, or warehouse departments cannot communicate the quantity or price for raw materials.
The production process is usually not done simultaneously with the managerial building. This is to reduce production risks and maintain product quality. Therefore, it is sometimes difficult to monitor directly how far the production progress of a product is, how much has been produced directly, and to know the problems that occur in the work process.
One of the crises that can occur in a business can be caused by late financial reporting. From irregular recording systems, slow audits, lack of expert staff, and poor cash flow, various things that cause late financial reporting can lead to a decline in investor confidence to invest their capital.
A business crisis can also occur due to a business that has not adapted to technology. As technology can help simplify the production process, businesses that still operate manually will tend to lose out to businesses that have assimilated the use of technology.
Odoo Solution for the Manufacturing Industry
Here is how our all-in-one system transforms your operations:
Inventory
Real-time, organized stock updates that sync instantly with actual usage.
MRP & Work Order
Complete production control from raw material mapping to shop floor execution.
Costing & BoM
Accurate manufacturing cost estimation to eliminate unexpected budget overruns. Automated COGS.
Accounting
Instant, tax-ready financial reporting with automatic cross-division syncing.
Quality Control
Automated, standardized product checks integrated directly into your workflow.
and more!
Excited to see how we can transform your business? Click the button(s) below!
