Is Indonesia's manufacturing sectorstill relevant for growth and development? As a result ofthe last boom in global commodity prices between 2003 and2008, resources in Indonesia shifted towards commodities andresource-based manufacturing as these sectors seemed topromise higher returns on investment. In recent quarters,however, the manufacturing sector has exhibited strongeroutput growth rates and attracted more investment. This noteargues that building on the current momentum ofmanufacturing growth is critical for Indonesia'sdevelopment (i) to support the creation ofhigher-productivity jobs, (ii) to sustain higher economicgrowth and progress in structural change, and (iii) toachieve long-term prosperity. Finally, this note also showshow the Master Plan for the acceleration and expansion ofIndonesia's economic development (MP3EI) acknowledgesthe importance of the manufacturing sector for economic growth.