Made in Indonesia Alone Not Enough for Sustainable Domestic Industry, Here's Why
Jakarta, VIVA – Indonesia is being encouraged to build its own industry and not merely attract foreign investment amid the transition to a green economy. Mastery of technology, the presence of innovation, and the birth of national companies with a global reach are prerequisites.
Wakil Koordinator Sekretariat Satgas Percepatan Hilirisasi Dimas Muhamad cited the success of South Korea and Vietnam, which have managed to transform their economies through industrial development.
“If we want to become a developed country and create quality jobs, we must have a robust industry as the backbone of economic development,” he said at an event titled ‘Made in Indonesia: Building Sustainable Industrial Competitiveness’, quoted from a statement on Tuesday, 28 July 2026.
The forum emphasised that strengthening green industrial competitiveness requires cross-sector collaboration. This is not only to attract investment but also to ensure that investment results in technology transfer, human resource development, and the strengthening of domestic industrial capacity.
According to Dimas, Indonesia needs to learn from countries that have successfully escaped the middle-income trap by building domestic companies that master technology. He assessed that the success of industrialisation cannot be measured solely by the amount of incoming investment.
“Made in Indonesia alone is not enough. What we need is Made by Indonesia. We must have national companies that are able to absorb technology, innovate, and become global champions,” he stressed.
He explained that countries which have successfully undergone industrial transformation do not only rely on investment, but are also capable of absorbing technology (infusion) and creating innovation. To achieve this, the state must be present through policies that encourage the development of strategic industries, including providing space for innovation without the fear of criminalisation over policy risks.
“If we agree that Indonesia must pursue green industrialisation, then we must also build an equally strong coalition. This is not merely about helping industry, but about creating quality jobs and making Indonesia a productive nation capable of creating its own technology,” he said.
Echoing this sentiment, Managing Director of Industrialization at the Danantara Investment Management Agency (BPI), Ardy Muawin, stated that no developed country has a weak industrial sector or depends on the technology of other nations.