UNIDO Recognises Indonesia's Downstreaming Strategy as a Global Best Practice
Indonesia’s industrial downstreaming strategy has once again gained international recognition. In the Industrial Development Report (IDR) 2026 published by the United Nations Industrial Development Organization (UNIDO), Indonesia has been placed as one of the best practice examples in downstreaming-based industrial development.
Minister of Industry Agus Gumiwang Kartasasmita stated that the recognition shows the national industrial transformation is beginning to attract the attention of the international community. According to him, the downstreaming policy pursued by the government is considered capable of increasing the added value of natural resources while strengthening the foundation of the manufacturing industry.
“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 national industry so that it is able to produce value-added products, create jobs, and increase Indonesia’s contribution to the global value chain,” Agus said in a statement in Jakarta on Tuesday.
The recognition was conveyed during the regional launch of the IDR 2026 through the Workshop: A Regional Launch Event of UNIDO’s Industrial Development Report (IDR) 2026 and Indonesia Development Talks 24th Edition in Jakarta.
Indonesia was selected as one of the best practice examples because it is considered to have successfully encouraged industrial transformation through a downstreaming policy that increases the added value of natural resources. This approach is deemed capable of shifting the economic orientation from raw material exports towards the development of domestic processing industries.
In its report, UNIDO specifically highlighted the development of the critical mineral processing industry and the construction of a national electric vehicle ecosystem as examples of Indonesia’s success in building value-added industries. This strategy is seen as capable of strengthening manufacturing competitiveness while creating opportunities for the birth of various new industries.
The Industrial Development Report is UNIDO’s flagship publication containing analysis on world industrial development along with policy recommendations for its member countries. The 2026 edition reviews various major changes affecting the global industrial landscape, from digital transformation and the energy transition to shifts in investment patterns and rising geopolitical tensions. Indonesia is cited as one of the countries benefiting from these trends, particularly in the electric vehicle, battery, and strategic mineral processing sectors.