Jakarta, INTI - Indonesia continues to strengthen the foundations of its national industry to compete in the green economy era. Mastery of technology, innovation, and the emergence of globally competitive national companies are considered key to ensuring Indonesia becomes an investment destination and a hub for industrial development.
Deputy Coordinator of the Downstream Acceleration Task Force Secretariat, Dimas Muhamad, said Indonesia can learn from South Korea and Vietnam that have successfully transformed their economies through industrial sector development.
“If we want to become a developed country and create quality jobs, we must have a strong industry as the backbone of economic development,” said Dimas at the Katadata Policy Dialogue in Jakarta on Tuesday, July 28, 2026.
Dimas believes that the success of industrialization is not solely determined by the amount of incoming investment. Indonesia must also be able to build national companies that master technology and are able to compete globally.
“‘Made in Indonesia’ alone isn't enough. What we need is ‘Made by Indonesia.’ We must have national companies capable of absorbing technology, innovating, and becoming global champions," he said.
He explained that industrial transformation can only be realized if investment goes hand in hand with technology transfer and innovation. Therefore, the government needs to implement policies that support the development of strategic industries while encouraging innovation.
Domestic Industry Must be Strengthened
Ardy Muawin, Managing Director of Industrialization at Danantara, expressed a similar view. According to him, no developed country has a weak industrial sector or is dependent on foreign technology.
"There is not a single developed country in the world that has a weak industry and lacks technological mastery. Industrialization is not just about the economy, but about building the nation's future," said Ardy.
Ardy believes that Indonesia is still too dependent on natural resource exports and low-cost labor. This development model is considered insufficient to make Indonesia a developed nation.
Through Danantara, the government is now encouraging investment in strategic sectors that can create added value domestically through downstreaming, technology transfer, talent development, and strengthening the national supply chain.
"We're not just looking for investors. Our questions are always the same about what technology can be brought to Indonesia and how it can be transferred so we can build our own capabilities," he added.
Conclusion
Indonesia is encouraged to strengthen the foundations of its national industry through mastery of technology, innovation, and the development of globally competitive companies. The government believes that the success of industrialization depends not only on the size of investment but also on technology transfer, innovation, and the ability to build a strong national industry.
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