UNIDO Recognises Indonesia as Best Practice Example for Downstreaming Industry
Indonesia’s downstreaming strategy has received global recognition. In its Industrial Development Report (IDR) 2026, the United Nations Industrial Development Organization (UNIDO) placed Indonesia as one of the best practice examples in downstream-based industrial development. The recognition was conveyed during the regional launch of the IDR 2026 through a workshop in Jakarta. “This is proof that Indonesia’s industrial transformation is beginning to gain the attention of the international community. Going forward, we will continue to strengthen the competitiveness of national industry to produce value-added products, create jobs, and increase Indonesia’s contribution in the global value chain,” said Minister of Industry Agus Gumiwang Kartasasmita. Indonesia was selected as a best practice example because it was deemed 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 value-added-based industry. The 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 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 shows the increasingly strong position of the People’s Republic of China as the world’s industrial production centre, followed by rising manufacturing investment in the ASEAN region, including Indonesia, particularly in the electric vehicle and battery sectors. Director General of Resilience, Regionalisation, and International Industrial Access at the Ministry of Industry, Tri Supondy, said the report serves as an important reference for the government in understanding the direction of global industrial development and formulating policies to address the challenges. “The Industrial Development Report is UNIDO’s flagship publication that consistently presents analysis of global industrialisation trends and provides policy recommendations for member countries in facing the ever-evolving global industrial landscape,” Tri said when opening the workshop. According to Tri, the recognition also serves as a reminder that industrialisation success cannot be measured solely by the ability to attract investment. Indonesia also needs to continue strengthening the quality of human resources, technological mastery, innovation, manufacturing capabilities, and supporting industries to take a greater role in the global value chain. In addition, the development of green industry and the application of environmentally friendly technology are important steps for national industry to adapt to the demands of sustainable development. The UNIDO recognition is expected to further strengthen Indonesia’s position as an industrial investment destination while increasing international confidence in the downstreaming policies being implemented by the government. The impact will not only open up industrial cooperation opportunities with more countries, but also encourage the growth of value-added industries, expand employment opportunities, and increase the competitiveness of Indonesian manufactured products in the global market.