Ilham Habibie Urges National Reindustrialisation, Here Is His Explanation

In a written statement published on Friday, 22 May 2026, Ilham Akbar Habibie, chairman of the Indonesian Engineers Association (PII), argued that national reindustrialisation is the big vision that can answer the nation’s restlessness. He said Indonesia’s industrial ecosystem, which he believes is undergoing early deindustrialisation, must be rebuilt. ‘In the 1990s the industrial sector’s contribution to our GDP touched 20 percent, but today we are below 20 percent, even 17 percent, which means we are experiencing a degradation of industry, and this is what deindustrialisation means,’ he stated. He argued that downstreaming, which the government has long promoted, is not enough, since turning raw materials into semi-finished or finished goods is only an initial step. He believes Indonesia needs a comprehensive reindustrialisation. However, he emphasised that reindustrialisation is not a repetition of past industrialisation that often damaged the environment and exploited people. ‘But reindustrialisation in the future must be more aligned with the 21st century. For example, circular, sustainable, regenerative, and human-centric industry, or placing people at the centre.’ The concept of reindustrialisation promoted by Ilham aims to ensure industrial development can meet domestic market needs, absorb local labour, and drive significant economic growth. In his view, engineers are at the forefront of designing infrastructure development, energy transformation, digitalisation, manufacturing, and strengthening national defence and food industries. ‘As an engineer, if people ask me what is most important for Indonesia to do? Reindustrialisation is the answer,’ he said. Separately, the PII actively facilitates the role of engineers in supporting infrastructure development and technological innovation. Ilham sees the Nusantara Capital City (IKN) as a living laboratory for modern urban development and the blueprint for national reindustrialisation. ‘IKN is a laboratory for development in other places in the future. The role of engineers is crucial as the main actors in development in the era of reindustrialisation and digitalisation,’ he said. In his view, engineers have a strategic responsibility that goes beyond purely technical solutions. ‘If scientists seek truth, engineers seek solutions. Therefore, the PII continues to promote innovation, collaboration, and the strengthening of engineers’ capacity so that they can make real contributions to Indonesia’s future,’ Ilham stated.