Global Geopolitical Pressures: Apindo Assesses Downstream Processing Still Hindered

The Indonesian Employers’ Association (Apindo) has spotlighted various bottlenecks in the implementation of the national downstream processing policy amid increasingly complex global geopolitical and geo-economic pressures.

This perspective emerged in a presentation by Rinawati Prihatiningsih, Chair of Apindo’s Multilateral Committee on International Relations, who emphasised the need for policy adjustments to make them more implementable and aligned with global dynamics and the needs of business actors.

Rinawati explained that in recent years, there has been a significant shift in the global geopolitical and geo-economic landscape.

According to her, this change is marked by rising protectionism, fragmentation of global supply chains, and the emergence of various unilateral policies from major countries.

“This situation directly affects the stability of global trade, investment flows, and the position of developing countries in the international economic system,” said Rinawati in her statement at the discussion on “The Influence of Geopolitics and Geo-economics on National Downstream Processing,” organised by the Ministry of National Development Planning/Bappenas, quoted on Friday (10/4/2026).

In this situation, Indonesia faces the challenge of maintaining economic competitiveness while strengthening national industrial resilience. Rinawati views the downstream processing agenda as a key strategy in driving national economic transformation.

However, the implementation of the downstream processing policy is still seen as facing several challenges, both domestically and externally.

Domestically, there is a gap between policy design and real conditions on the ground.

Rinawati revealed that business actors still face various obstacles related to regulations, incentives, infrastructure readiness, access to financing, and market access.

Meanwhile, externally, changes in the global landscape also add pressure to national industrial competitiveness. Fragmentation of global supply chains and international trade dynamics affect investment flows and Indonesia’s position in the global supply chain.

In this context, Rinawati emphasised the importance of incorporating business perspectives into policy formulation and evaluation.

This is considered crucial for identifying real obstacles faced by the industry and formulating more targeted policies.