Higher Education Minister: Indonesia Must Accelerate Industrial Development

Jakarta (ANTARA) — Higher Education, Science and Technology Minister Brian Yuliarto said Indonesia must accelerate industrial development to capitalise on its demographic dividend and escape the middle-income trap.

Speaking at the Danantara Technology & Innovation Investment Forum (DTIIF) 2026 in Jakarta on Monday, Brian said the period leading up to 2045 would be crucial, as the window for Indonesia’s demographic dividend was expected to close that year.

He said strengthening industrialisation was one of the keys to escaping the middle-income trap. Indonesia needed to halt deindustrialisation and build more industries, he said.

Brian cited South Korea, China and India as examples of countries that had developed industry as a driver of economic growth.

“Enough of the theories; we must establish industries as quickly as possible. That is the key. Once industries are established, innovation will grow,” he said.

Alongside faster industrial development, Brian stressed the importance of collaboration between businesses and universities on research and technology development.

He said university research needed to produce products that industry could use, rather than ending with academic publications alone.

At the same time, he said, industry needed to play a greater role in funding and conducting research jointly with universities.

“We also want industry to collaborate with universities because in many developed countries, industry-funded research is more dominant than government spending on research,” he said.

Brian cited Turkey, where, he said, industry provides up to 70 per cent of research funding.

He also emphasised the need to increase the number of graduates in science, technology, engineering and mathematics (STEM) to meet workforce demand as science- and technology-based industries develop.

“So, we at universities are very keen for businesses and Danantara to assign us to disseminate human resources and conduct research, and then help drive existing industries,” Brian said.