Indonesian Political, Business & Finance News

India and Indonesia Unveil Collaborative Roadmap with IndiaTechZone, Special Economic Zone and Investment Desk

| Source: GALERT
Jakarta, 25 April 2025 — The Indonesia Economic Forum, in collaboration with the Ministry of Investment and Downstream Industry, PT Jababeka Tbk, and the Indian Embassy in Indonesia, held a high-level forum entitled "The Innovation Edge: India–Indonesia Collaboration Towards a Future-Ready Economy" at the Nusantara Hall, Ministry of Investment and Downstream Industry (BKPM), Jakarta.

The forum brought together senior government officials, industry leaders and innovators, including the Deputy for Investment Promotion at the Ministry of Investment and Downstream Industry, Nurul Ichwan, who delivered a keynote address. Indonesia and India announced a collaborative roadmap to strengthen bilateral cooperation in technology, industry and human resource development. The forum produced various concrete initiatives jointly conceived by government representatives, industry players and the Indian Embassy.

In his address, Nurul Ichwan stressed the importance of forging strategic partnerships with India in pursuit of Indonesia Vision 2045. "Competition is the primary driver of the future. And competition will be won by countries that have been competing positively with us. This is why Indonesia sees the importance of this collaboration with India. We need to appreciate India, and we must learn a great deal from India, because in many respects, India is several steps ahead of Indonesia, particularly in terms of technological advancement," he said.

He further emphasised that India-Indonesia cooperation would play a major role in driving industrial transformation and massive human resource capacity building. "In India, technology has developed very well. Despite having an enormous population, creativity and innovation have become integral to its technological development, which has ultimately earned India recognition on the global stage. This is what Indonesia needs to learn. We must sit together and work together."

Ichwan explained that Indonesia is currently at a crucial juncture to accelerate industrial growth — not only through capital investment but also through improving human resource quality and technology transfer. "We all know that Indian talents now lead many of the world's largest technology companies. We can learn from and benefit from India's experience, and therefore we strongly support initiatives like this that promote cross-sector collaboration. Indonesia cannot advance alone — collaboration is key to achieving our Vision 2045."

He also affirmed that one of the Indonesian government's current priority policies is downstream industry development as part of the national industrialisation strategy, which he said cannot be achieved without adequate technological support.

Following the keynote, a high-level panel discussion moderated by Sachin V Gopalan featured prominent leaders from the industry, investment and innovation ecosystem. The panel explored how bilateral partnerships — supported by initiatives such as IndiaTechZone and India SEZ — can accelerate Indonesia's transformation towards a future-ready economy.

Panellists included Sandeep Chakravorty, Indian Ambassador to Indonesia; Cahyo Purnomo, Director of Promotion for East Asia, South Asia, Middle East and Africa at the Ministry of Investment and Downstream Industry; S.D. Darmono, Founder and Chairman of PT Jababeka Tbk; Dr Ilham Akbar Habibie, Chairman of the Indonesian Engineers' Association (PII); and Shinta Widjaja Kamdani, Chairwoman of the Indonesian Employers' Association (APINDO).

**IndiaTechZone: Building Indonesia's Largest Industrial Innovation Hub**

The forum's principal announcement was the planned establishment of IndiaTechZone at the Jababeka Industrial Estate in Cikarang — a visionary initiative to be developed through a strategic partnership with PT Jababeka Tbk. Designed as a next-generation innovation hub, the zone will integrate up to 30 leading Indian technologies and serve as an open innovation platform for industrial collaboration.

IndiaTechZone will function as an industrial innovation centre where Indian startups and technology companies can test and implement real solutions in an industrial environment. The zone will also provide collaborative spaces for Indian and Indonesian startups alongside local industry players, and feature technical training centres offering short courses and certification programmes tailored to future industry needs. Industrial tourism programmes for students, factory managers and entrepreneurs will also be offered.

Indian Ambassador Sandeep Chakravorty stated: "IndiaTechZone is designed not merely as a technology showcase but as a tangible expression of India's commitment to Indonesia's industrial transformation. This will be the world's first permanent centre showcasing Indian technology at an industrial scale."

The Ambassador also proposed the possible establishment of a Fast-Track Mechanism for Investment, enabling regular inter-ministerial meetings led by BKPM to review and facilitate two-way investment flows between India and Indonesia. He noted that India already has similar mechanisms with key economic partners such as France and Germany.

S.D. Darmono, Founder and Chairman of the Jababeka Group, affirmed: "This zone is not merely about physical infrastructure. It is a platform for empowering communities, young people and entrepreneurs. We must think big and start small, but move fast."

Dr Ilham Akbar Habibie welcomed the support from leading Indian technical education institutions. "The world is entering a new phase that I call Re-Industrialisation. Major nations are seeking to restore their past manufacturing prowess. Indonesia needs this too. And for that, we need innovation that is not only large-scale but also relevant and applicable for SMEs and startups."

APINDO Chairwoman Shinta Widjaja Kamdani stressed the importance of upskilling Indonesia's technical workforce. "We have not paid sufficient attention to the need for large-scale technical workforce upskilling. This collaboration will create new value chains in industrial development — not only in terms of capital but also in terms of talent and fresh ideas."

A key achievement of the forum was the signing of a Memorandum of Understanding between India's Aptech and Indonesia's Orbit Future Academy, aimed at providing skills training programmes for students and active workers in the manufacturing sector.

Sachin V Gopalan, CEO and Founder of the Indonesia Economic Forum, added: "This is not merely a forum; it is the beginning of a new chapter in industrial cooperation." He emphasised that the 8 per cent economic growth target set by President Prabowo Subianto cannot be achieved without a strong industrialisation narrative underpinned by high technology.

**India SEZ: A Special Economic Zone for Indian Industry**

Jababeka is currently planning the development of an India Special Economic Zone (SEZ) — an area dedicated to Indian companies establishing manufacturing facilities and technical service centres in Indonesia, designed as an integrated production base connected to the ASEAN market.

The initiative is projected to accelerate foreign direct investment inflows, facilitate technology transfer, simplify administrative processes and create a conducive investment climate for Indian companies operating in Indonesia. Indian investment in Indonesia reached USD 173.1 million in 2024, according to BKPM's annual report.

Shinta Widjaja Kamdani offered broader strategic observations: "The current global geopolitical situation serves as a reminder for Indonesia. Although we have carried out many structural reforms in recent years, we are also aware that the main challenge lies in implementation." She also highlighted that financing remains a key challenge for many businesses.

Cahyo Purnomo stressed the importance of maintaining engagement with existing investors. He revealed that last year Indonesia recorded investment realisation slightly above USD 100 million, stemming from both foreign and domestic direct investment interest.

Dr Ilham Akbar Habibie highlighted potential collaboration in the automotive sector: "We know that India has a very strong automotive industry, and I see great potential for collaboration in that sector. This is not just about adding a new brand but about opening space for innovation, where I believe Indonesia's long-held dream of having a national automotive brand can be realised through India-Indonesia cooperation."

**BKPM to Launch India Desk to Facilitate Investment**

The Ministry of Investment (BKPM) announced plans to establish an India Desk — a dedicated unit providing facilitation and consultancy services tailored to the unique needs of Indian companies, from regulatory guidance and licensing assistance to land acquisition and operational arrangements.

Shinta Widjaja Kamdani, as principal advocate of the India Desk in her capacity as Special Adviser to BKPM, stated: "The India Desk is not just for solving problems — it is for building an ecosystem. We need a single door connected to all ministries."

**Lifestyle and Cultural Ecosystem for the Indian Community**

With the growing Indian business presence in Indonesia, discussions are under way with companies including Ganesha Ek Sanskriti Restaurant, Ayurvedagram Bali, Zen Monk, Lyfline, and IndoFringe Festival of Performing Arts to develop Indian restaurants, cultural centres and Ayurveda clinics.

**Movieland and Bollywood: Collaboration in Film Production and Training**

Indonesia Movieland — a film production centre located in Jababeka, Cikarang — is set to collaborate with Indian film training institutions and Bollywood industry players to establish a technology-based film production academy, with training programmes covering directing, screenwriting, post-production and digital effects utilising generative artificial intelligence.

**Towards Concrete Action**

The forum marked an important milestone in India-Indonesia bilateral relations and a forward commitment to jointly creating a resilient, innovative and future-ready economy. By combining the strengths of both nations — India's technological expertise and capital with Indonesia's market potential and industrialisation ambitions — the partnership is projected to drive sustainable development, regional stability and inclusive growth.

"Let us start small, but never be afraid to think big," said S.D. Darmono. "And most importantly, don't wait for everything to be perfect before starting," added Sachin Gopalan.

As both nations align their visions towards 2045 and beyond, initiatives such as IndiaTechZone, India Special Economic Zone and the India Desk will serve as key pillars of a new era of collaboration — founded on mutual respect, shared prosperity and long-term strategic vision.
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