The Ministry of Industry has announced a new direction for Indonesia’s industrial policy through the launch of the National Industrialization Strategy (SBIN). The strategy provides a long-term framework to achieve Indonesia Emas 2045, serving as the main guideline for realizing President Prabowo Subianto’s Asta Cita vision.

The Ministry positions the industrial sector as the backbone of economic independence and public welfare. According to Minister of Industry Agus Gumiwang Kartasasmita, SBIN is a national response to rapid global changes marked by uncertainty and disruption. “SBIN is not merely a sectoral policy of the Ministry, but a national strategy to ensure that Indonesian industry not only survives but grows and becomes sovereign,” he said during the Ministry’s 2025 Working Meeting in Jakarta on Monday (27/10).

Four Main Pillars of the National Industrialization Strategy

Minister Agus explained that SBIN acts as a blueprint for Indonesia’s industrialization in the post-pandemic and post-carbon era. The strategy integrates economic independence, technological transformation, and environmental sustainability into one unified framework.

Four main pillars form the foundation of SBIN:

1. Resource-based industrialization
2. Industrial ecosystem development
3. Technology mastery
4. Sustainability principles

Resource-based industrialization focuses on strengthening the processing of national commodities such as nickel, palm oil, and coal, to increase added value rather than exporting raw materials. The development of the industrial ecosystem emphasizes integration between upstream and downstream sectors, supported by skilled human resources and industrial infrastructure.

“The other two pillars highlight technology mastery and sustainable industry. Technological capability is key to productivity and competitiveness, while green industry and circular economy principles form the foundation of future industrial growth. True industrialization must not sacrifice the environment but create a balance between economic progress and nature preservation,” said Minister Agus.

Strengthening the Domestic Market and Expanding Global Opportunities

Minister Agus stated that domestic market protection is a top priority under SBIN, as around 80 percent of national industrial output is absorbed by the local market. Maintaining market stability is essential for industrial resilience against global shocks.

To achieve this, the government will strengthen the Local Content Requirement (TKDN) policy to ensure that government spending supports national industries. Tariff and non-tariff instruments will also be optimized to control the inflow of finished imported goods. These measures aim not to close the market but to create space for domestic industries to grow and compete fairly.

At the same time, the Ministry will enhance export expansion and industrial diplomacy toward non-traditional markets. This includes increasing Indonesia’s participation in global supply chains. The battery-based electric vehicle (KBLBB) sector is one of the future export focuses, given Indonesia’s strength in nickel resources.

Encouraging Investment, Technology, and Human Resource Development

The Ministry of Industry will continue to promote investment in high-value, import-substitution sectors. Every investment must create quality jobs, raise productivity, and strengthen the national industrial structure. Priority sectors include strategic minerals, basic chemicals, pharmaceuticals, electronic components, and food.

Industrial competitiveness will be supported by technological innovation and research incentives. The Ministry will expand machine restructuring programs and ensure technology transfer from global investors to national industries.

Human resource development is also a crucial factor. The Ministry continues to expand vocational education, industrial polytechnics, and link-and-match programs with businesses to prepare graduates for modern industrial work. “Industrial human resources must become drivers of transformation, not mere spectators of change,” said Minister Agus.

Regulatory Reform, Institutional Synergy, and Halal Industry Strengthening

Minister Agus highlighted the importance of industrial regulatory reform that is adaptive and growth-oriented. Overlapping and unsynchronized regulations remain obstacles for investment and productivity. Therefore, the Ministry is accelerating the creation of smart regulations that are simple, measurable, and data-based.

He also emphasized the need for cross-ministerial collaboration, involving the Ministry of Energy and Mineral Resources for energy supply, the Ministry of Agrarian Affairs for industrial land, the Ministry of Finance for fiscal incentives, the Ministry of Trade for trade policy, and BRIN for research support. “The Ministry of Industry must not be passive. We must actively defend national industrial interests in inter-ministerial forums,” he said.

The strengthening of the halal industry is also a strategic priority. Coordination with BPJPH and other ministries will ensure that the halal certification process becomes a growth accelerator. The halal ecosystem will be developed comprehensively from raw materials to distribution, while revisions to TKDN policies are expected to strengthen the industrial structure through simpler and more transparent certification.

Building Integrated Industrial Linkages for Indonesia Emas 2045

To realize President Prabowo’s Asta Cita vision, industrialization must create strong connections between upstream and downstream sectors. Building backward and forward linkages will strengthen value chains and generate broader economic impact. Examples such as the palm oil and nickel industries show how integrated ecosystems can drive economic growth.

“Concrete supporting factors such as raw material availability, logistics infrastructure, sustainable energy, competent human resources, research and innovation, and smart regulations must be present on the ground, not only written in plans,” Minister Agus explained.

He also shared lessons from Japan, China, and Turkey. Japan developed an algae-based industry supporting the green economy, China advanced coal-to-chemical technology for energy independence, and Turkey succeeded in protecting its domestic market while promoting pride in local products. Inspired by these examples, Indonesia aims to build thematic industrial zones integrating bioindustry, clean energy, and petrochemicals to create globally competitive innovation centers.

Minister Agus affirmed that SBIN is a key foundation in achieving Asta Cita and Indonesia Emas 2045. Industrialization is not only for economic growth but also for national sovereignty, equitable development, and public welfare.

“We aim for an industry that is strong, competitive, and sustainable. Industrialization must provide real benefits to the people, create quality jobs, and bring a better future,” he stated.

The Ministry of Industry is committed to implementing this policy direction through measurable programs, strong internal synergy, and clear performance indicators. With collaboration, innovation, and independence, the Ministry is confident that the industrial sector will become the main driver toward economic independence and the success of Indonesia Emas 2045.

PHOTO: KEMENPERIN

This article was created with AI assistance.