"Made by Indonesia" Becomes Industrialisation Agenda
Indonesia is considered insufficient as merely an investment destination and production location for global companies to achieve a competitive and sustainable industry. To escape the middle-income trap while winning the green economy competition, Indonesia must build national companies that master technology, generate innovation, and compete in the international market.
This view emerged during a discussion titled “Made in Indonesia: Building Sustainable Industrial Competitiveness” in Jakarta on Tuesday (28/7/2026). The forum highlighted the need for national industrial transformation amidst the accelerating transition to a low-carbon economy and increasing global competition for technological mastery. The discussion also emphasised that the success of green industrialisation is not solely determined by the magnitude of investment entering Indonesia, but also by the extent to which that investment results in technology transfer, strengthens domestic industrial capacity, develops human resources, and creates national companies capable of becoming global players.
Deputy Coordinator of the Downstreaming Acceleration Task Force Secretariat, Dimas Muhamad, stated that the experiences of countries like South Korea and Vietnam show that industrial development is the primary foundation for long-term economic growth. “If we want to become a developed country and provide quality jobs, we must have a robust industry as the backbone of economic development,” Dimas said. He added that Indonesia needs to learn from nations that have escaped the middle-income trap by building national companies with technological and innovative capabilities. “Made in Indonesia is no longer enough. What we need is Made by Indonesia. We must have national companies that can absorb technology, innovate, and become global champions,” he asserted.
Dimas explained that industrial transformation in various countries is always supported by three main elements: investment, technology absorption, and innovation. These three elements must run concurrently so that Indonesia becomes not just a production base but also a centre for technological development. He said the government must introduce policies that encourage the growth of strategic national industries while providing space for innovation so that businesses dare to take risks in developing new technologies. “If we agree that Indonesia must carry out green industrialisation, then we must also build an equally strong coalition. This is not just about helping industry, but about creating quality jobs and making Indonesia a productive nation capable of creating its own technology,” he said.
Managing Director of Industrialisation at the Danantara Investment Management Agency (BPI Danantara), Ardy Muawin, shared a similar view. He stated that no developed country has a weak industrial base or depends on other countries for technology. “Industrialisation is not just about the economy, but about building the nation’s future,” Ardy said. He assessed that a development model overly reliant on commodity exports and cheap labour is no longer adequate given the changing global economic landscape. “If we only follow market mechanisms, Indonesia will keep selling natural resources and cheap labour. The question is, is that the future we want as a nation?” he asked. Ardy explained that through Danantara, the government is trying to direct investment into strategic sectors that can create domestic added value, with a focus not only on downstreaming natural resources but also on building new industries supported by technology mastery, talent development, and strengthening the national supply chain. He stressed that the quality of investment is now the main concern, not just the amount of capital entering Indonesia. “We are not just looking for investors. Our question is always the same: what technology can be brought to Indonesia and how can that technology be transferred so that we can build our own capabilities,” he said.
President Director of Indonesia Battery Corporation (IBC), Aditya Arif, said that mastering technology is the biggest challenge in building the national battery industry. He explained that partnerships with global players are necessary as an entry point to learn technology and manufacturing processes, but Indonesia must not stop at being a technology user. “We start with partnerships with global players to learn how to operate the technology. But we cannot stop there. The ultimate goal is to build our own capabilities and own the technology,” Aditya said. He noted that the battery industry is developing very rapidly, making research and innovation capabilities the determining factors for competitiveness. Therefore, collaboration between industry, universities, research institutions, and the government must be continuously strengthened to produce human resources capable of keeping up with global technological developments. According to Aditya, building the battery industry is not solely aimed at producing goods, but also at building national capabilities in mastering strategic technologies that will form the foundation of the energy transition. “What we are building is not just a battery factory, but Indonesia’s technological capability. Therefore, IBC does not only stand for Indonesia Battery Corporation. For us, IBC also means Indonesia Battery Champion,” he said.
The discussion confirmed that the success of the transition to a green economy requires a fundamental shift in the national industrialisation strategy, from relying on “Made in Indonesia” to building “Made by Indonesia”.