UNIDO Recognises Indonesia as Best Practice Example for Downstreaming Industry

Indonesia’s downstreaming strategy has gained global recognition. In the Industrial Development Report (IDR) 2026, the United Nations Industrial Development Organization (UNIDO) has placed Indonesia as one of the best-practice examples in developing downstreaming-based industry. The recognition was announced at the regional launch of the IDR 2026, held through the Workshop: A Regional Launch Event of UNIDO’s Industrial Development Report (IDR) 2026 and Indonesia Development Talks 24th Edition in Jakarta.

“This is proof that Indonesia’s industrial transformation is starting to attract international attention. Going forward, we will continue to strengthen the competitiveness of national industry so that it can produce value-added products, create jobs, and enhance Indonesia’s contribution to global value chains,” said Minister of Industry Agus Gumiwang Kartasasmita in a statement in Jakarta recently.

Indonesia was selected as one of the best-practice examples 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 critical mineral processing industries and the national electric vehicle ecosystem as examples of Indonesia’s success in building value-added industry. The approach was considered capable of strengthening manufacturing competitiveness while creating opportunities for new industries to emerge.

The Industrial Development Report (IDR) is UNIDO’s flagship publication containing analysis of global industrial development as well as policy recommendations for its member states. The 2026 edition discusses various changes shaping the face of global industry, from technological transformation, energy transition and shifting investment flows to geopolitical dynamics. One of its findings shows the strengthening position of the People’s Republic of China as the world’s industrial production hub, followed by rising manufacturing investment in the ASEAN region, including Indonesia, particularly in the electric vehicle and battery industries.

Director General of Resilience, Regional Development, and International Industrial Access (KPAII) at the Ministry of Industry, Tri Supondy, said the report is an important reference for the government in understanding the direction of global industrial development and formulating policies capable of addressing those challenges.

“The Industrial Development Report is UNIDO’s flagship publication that consistently presents analysis of global industrialisation trends and provides policy recommendations for member states in facing the ever-evolving global industrial landscape,” said Tri when opening the Workshop: A Regional Launch Event of UNIDO’s Industrial Development Report (IDR) 2026 and Indonesia Development Talks 24th Edition.

According to Tri, the recognition also serves as a reminder that successful industrialisation cannot be measured solely by the ability to attract investment. Indonesia must also continue to strengthen the quality of its human resources, mastery of technology, innovation, manufacturing capability, and supporting industries in order to take on a greater role in global value chains. In addition, developing green industry and adopting environmentally friendly technology are important steps for the national industry to adapt to the demands of sustainable development.

UNIDO’s recognition of Indonesia is expected to further strengthen the country’s position as an industrial investment destination while boosting international confidence in the downstreaming policy currently being pursued by the government. The impact is not only expected to open up industrial cooperation opportunities with more countries, but also to foster the growth of value-added industries, expand employment opportunities, and enhance the competitiveness of Indonesian manufactured products in the global market.