Jakarta, INTI - The Ministry of Industry (Kemenperin) is focusing on strengthening the national startup ecosystem as part of a strategy to accelerate the transformation of the manufacturing industry through technology and innovation. This initiative aims to deliver digital solutions that boost the productivity, efficiency, and competitiveness of the national industry, thereby enhancing its standing in the global market.
The Ministry notes that the Startup for Industry (SFI) program, active since 2018, has fostered an ecosystem comprising 2,577 startups. Of these, 1,740 operate in the technology sector, while 640 focus on hardware technology development, including the Internet of Things (IoT), robotics, artificial intelligence (AI), and 3D printing.
Minister of Industry Agus Gumiwang Kartasasmita emphasized that the development of industrial startups is a crucial component of the National Industrialization Grand Strategy (SBIN). This strategy aims to strengthen industrial structures, accelerate digital transformation, and increase national economic value-added.
"Indonesia needs not only a growing number of startups but also startups capable of solving real-world problems within the industrial sector. Startups must serve as strategic partners to the national industry in enhancing productivity, efficiency, and competitiveness to drive high-quality economic growth," said Agus during the official launch of the Indo Startup Expo and Forum 2026 in Jakarta on Thursday, August 6, 2026.
According to Agus, Indonesia possesses immense potential to become a regional hub for startup growth. Startup Ranking data places Indonesia sixth globally with over 3,100 active startups, making it the country with the highest number of startups in Southeast Asia. Nevertheless, the quality of the national startup ecosystem still requires further strengthening.
Manufacturing Industry Growth Momentum
In the second quarter of 2026, the non-oil and gas processing industry grew by 5.32% (year-on-year). The figure surpasses the national economic growth rate and remains the largest contributor to Indonesia's economy.
Furthermore, the manufacturing sector accounted for 39.7% of realized national investment, employed over 20 million workers, and contributed approximately 82% (USD 115.5 billion) to total national exports in the first semester of 2026.
According to Agus, this achievement must be accompanied by strengthened technology innovation to ensure the national industry continues to grow sustainably.
"Industrial growth must go hand-in-hand with increased productivity and innovation. This is where startups play a strategic role as providers of technology solutions capable of addressing industrial needs from upstream to downstream," he emphasized.
The Government’s Role in Connecting the Industries
On the other hand, Indonesia possesses a massive domestic market. Data from Statistics Indonesia (BPS) indicates there are approximately 4.43 million small and medium-sized industrial units (IKM) with the potential to utilize various technology solutions developed by startups.
"For tech startups, these millions of IKMs represent a tremendous market opportunity. The government's task is to match industrial needs with solutions generated by startups, thereby creating a mutually reinforcing ecosystem," he stated.
To support this initiative, Kemenperin’s Directorate General of Small, Medium, and Miscellaneous Industries (IKMA) signed a cooperation agreement with Infineon Technologies Asia Pacific. The partnership focuses on developing technology-based startups and strengthening the national semiconductor ecosystem, formalized during the Indo Startup Expo and Forum 2026.
Adie Rochmanto Pandiangan, the Acting Director General of IKMA, stated that the collaboration is expected to accelerate technology transfer, enhance human resource competencies, and open access for Indonesian startups to the global supply chain.
Conclusion
The Ministry of Industry is strengthening the national startup ecosystem to accelerate the transformation of the manufacturing industry through technology and innovation. Minister Agus emphasized that startups must serve as strategic partners to the industry in boosting productivity, efficiency, and competitiveness. To further strengthen this ecosystem, IKMA Kemenperin partners with Infineon Technologies Asia Pacific to accelerate technology transfer, enhance human resource competencies, and provide Indonesian startups with access to the global semiconductor supply chain.
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