Indonesia promotes downstreaming to boost high-value manufacturing
Indonesia Pushes Downstreaming to Boost High-Value Manufacturing
13 Okt 2026 20:56 WIB
Voice of Indonesia
Key Points
Indonesia targets high-value manufacturing to reduce dependence on raw material exports and boost global competitiveness.
Battery and EV investments signal industrial progress, but technology and skilled talent remain crucial for high-income status.
RRI.CO.ID, Jakarta – The Indonesian government is promoting downstream industrialization toward high-value-added manufacturing to strengthen the competitiveness of the national industry. This strategy aims to increase economic complexity, expand access to global markets, and create high-skilled jobs.
Deputy Minister of Finance, Juda Agung, stated that Indonesia needs to reduce its reliance on natural resource-based economic activities and strengthen its technological and innovation capabilities.
“From simply producing goods to designing and developing high-value-added products. From merely being a market for global products to becoming an integral part of the global value chain,” Juda said at the Prasasti Indonesia Policy Forum 2026 in Jakarta on Tuesday, October 13, 2026, as quoted by Antara.
According to him, Indonesia needs to develop more advanced raw materials and expand manufacturing production. This would allow the country to secure greater economic value within the global industrial chain.
Juda cited the development of the battery industry in Weda Bay and the construction of the BYD electric vehicle plant in Subang as examples of progress in the national manufacturing base. “These two examples demonstrate the growing strength of Indonesia’s industrial base, which is rooted in natural resources,” he said.
Increasing economic complexity is one of the prerequisites for Indonesia to achieve high-income country status. This indicator reflects mastery of knowledge, technology, and skills in national industry products.
The government is prioritizing improvements in human capital, digitalization, innovation, and food and energy security to support industrial transformation. In this regard, fiscal policy through the State Budget plays a role in building the foundation for productivity, supported by Danantara Indonesia, which is expected to drive strategic investment. ***
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