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Industrialization has been a major driver in Indonesia’s transition from an agrarian to a modern economy. Its contribution to productivity growth, job creation, and economic diversification makes it a strategic component of national development. The integration between industry and other sectors such as agriculture, services, trade, and labor proves essential in strengthening competitiveness and achieving inclusive growth. Findings indicate that despite its potential, industrialization in Indonesia still faces challenges such as import dependency, limited skilled labor, and regional disparities. Therefore, future industrial strategies should focus on enhancing sectoral linkages, promoting equitable development, and improving human capital and infrastructure capacity to support sustainable economic growth.

Industrial development in Indonesia is currently taking place very rapidly in line with the advancement of the technological era with the establishment of large companies with very sophisticated equipment and the continuous improvement of several sectors, such as agriculture, education, property, handicrafts and weaving. Industry can be defined as an economic activity that processes raw materials or semi-finished goods into goods of higher value. Development is a process of change that is planned as one of human efforts to improve the quality of life. Likewise, national development is closely related to the country's ability to utilize its resources, either with the help of technology or without the help of technology. National development is essentially multidimensional, involving various sectors such as education, agriculture, health, industry and so on. The Industrialization process is a process of socio-economic change that changes the livelihood system of an agrarian society into an industrial society. Industrialization can also be interpreted as a situation where society focuses on the economy which includes increasingly diverse jobs (specialization), higher salaries and income. Industrialization is part of the modernization process where social change and economic development are closely related to technological innovation