Indonesia's Downstreaming Strategy Gains Global Recognition, Says Industry Ministry
The Ministry of Industry (Kemenperin) has stated that Indonesia’s industrial downstreaming strategy has gained global recognition, as reflected in the Industrial Development Report (IDR) 2026 published by the United Nations Industrial Development Organization (UNIDO). The report cites Indonesia as one of the best practice examples in downstream-based industrial development. “This is proof that Indonesia’s industrial transformation is beginning to attract the attention of the international community. Going forward, we will continue to strengthen the competitiveness of the national industry to produce value-added products, create jobs, and increase Indonesia’s contribution to the global value chain,” said Minister of Industry Agus Gumiwang Kartasasmita in a statement in Jakarta on Tuesday. The recognition was conveyed during the regional launch of the IDR 2026 through a workshop in Jakarta. Indonesia was selected as a best practice example because it is considered successful in driving industrial transformation through downstreaming policies that increase the added value of natural resources. In its report, UNIDO specifically highlighted the development of the critical mineral processing industry and the national electric vehicle ecosystem as examples of Indonesia’s success in building a value-added-based industry. This approach is considered capable of strengthening manufacturing competitiveness while creating opportunities for the growth of new industries. The Industrial Development Report is UNIDO’s flagship publication containing analysis of global industrial developments and policy recommendations for its member countries. The 2026 edition reviews various changes shaping the face of global industry, from technological transformation and energy transition to investment shifts and geopolitical dynamics. One of its findings indicates the strengthening position of China as a global industrial production centre, followed by increased manufacturing investment in the ASEAN region, including Indonesia, particularly in the electric vehicle and battery industry sectors. Tri Supondy, Director General of Resilience, Regionalisation, and International Industrial Access at the Ministry of Industry, said the report serves as a reference for the government in understanding the direction of global industrial development and formulating policies to address these challenges. According to Tri, this recognition is also a reminder that the success of industrialisation cannot be measured solely by the ability to attract investment. He said Indonesia must also continue to strengthen the quality of its human resources, technological mastery, innovation, manufacturing capabilities, and supporting industries to take a greater role in the global value chain. Furthermore, developing green industries and implementing environmentally friendly technologies are important steps for the national industry to adapt to the demands of sustainable development. He expressed hope that UNIDO’s recognition of Indonesia will further strengthen the country’s position as an industrial investment destination and increase international confidence in the downstreaming policies being implemented by the government.