Ministry Of Industry Launches New Strategy For National Industrialization, Carrying These Four Pillars

JAKARTA - The Ministry of Industry (Kemenperin) has launched a New National Industrialization Strategy (SBIN). Through SBIN, the Ministry of Industry wants to emphasize the new direction of national industrial policies as a strategic framework for long-term industrial development towards Indonesia Emas 2045.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed that the COVID-19 pandemic, trade wars, geopolitical tensions and global energy transitions have fundamentally changed the world industrial map. According to Agus, SBIN is a response to global rapid change, full of uncertainty and full of disruption.

SBIN is also the main guide in carrying out President Prabowo Subianto's vision as stated in Astacita, by placing the industrial sector as the backbone of economic independence and people's welfare.

"SBIN is not just a sectoral policy of the Ministry of Industry, but a national strategy to ensure that the Indonesian industry does not only survive, but grows and is sovereign," Agus said in an official statement quoted on Tuesday, October 28.

Agus explained, there are four main mindsets that are the pillars of SBIN, among others, natural resource-based industrialization (SDA), industrial ecosystem development, mastery of technology and application of sustainability principles.

According to him, SBIN was present as a blueprint for Indonesia's industrialization in the post-pandemic and post-carbon eras. This strategy combines economic independence values, technological transformation and environmental sustainability in an integrated framework.

The former Minister of Social Affairs explained that natural resources-based industrialization is directed to strengthen the industrialization of national leading commodities, such as nickel, palm oil and coal. This step aims to ensure that Indonesia's natural wealth is no longer only exported raw, but is processed into a high-valued product.

In addition, the development of the industrial ecosystem is pursued through an integration between the upstream and downstream sectors accompanied by strengthening human resources and supporting industrial infrastructure.

"The other two pillars focus on mastery of technology and sustainable industrial development," he said.

He said mastery of technology is the key to increasing productivity and competitiveness. Meanwhile, the principles of the green industry and the circular economy are the foundation of future industrial growth.

The Ministry of Industry also held a 2025 Working Meeting on 27-28 October 2025. On this occasion, the Minister of Industry emphasized that the protection of the domestic market is a top priority in SBIN. This is because around 80 percent of the national industrial output is absorbed by the domestic market.

Two, domestic market stability is the key to the resilience of the national industry so that it is not easily influenced by global turmoil. Therefore, the government will strengthen the policy of the level of domestic components (TKDN) so that government spending is truly in favor of national industrial products.

In addition, tariff and non-tariff instruments will continue to be optimized to control the flow of imports of finished products. The policy is not intended to close itself, but to create a growth space for domestic industry players to be able to innovate and compete in a healthy manner.

The Ministry of Industry will also strengthen industrial expansion to global markets through more proactive export diversification and industrial diplomacy. Non-traditional countries will be the main targets of market development, accompanied by efforts to expand Indonesia's participation in the global supply chain.

On the other hand, Agus highlighted that the battery-based electric vehicle (KBLBB) sector is one of the focuses of future exports because Indonesia has an advantage over the availability of nickel raw materials.

"This policy is expected to be able to strengthen Indonesia's position as a production center for electric vehicles in the Southeast Asia region," he said.

In the future, the Ministry of Industry will also increase investment in the industrial sector with high added value, oriented import substitution. Agus said that every investment must produce a multiplier effect in the form of creating quality employment opportunities, increasing productivity and strengthening the structure of the national industry.

The government will give priority to investment in the strategic mineral, basic chemistry, pharmaceuticals, electronic and food components. The Minister of Industry emphasized that increasing industrial competitiveness will be supported by mastery of technology and innovation.

In addition, the Ministry of Industry is expanding its engine restructuring program and providing research incentives for industries that modernize. Technology transfers from global investors to national industry players will be ensured so that incoming investments not only bring capital, but also knowledge, networks and long-term partnerships.

In terms of strengthening human resources, the Ministry of Industry continues to expand vocational education, industrial polytechnics and link and match schemes with the business world so that graduates are ready to enter the world of modern industrial work. The increase in labor competence is also directed at facing the era of digitalization of manufacturing and the development of industrial technology 4.0.

Furthermore, the Golkar politician also highlighted the importance of reforming adaptive and pro-growth industrial regulations. Regulations overlap or are not yet synchronized between agencies are still the main obstacle for investment and productivity. The Ministry of Industry is also spurring the acceleration of the birth of simple, measurable and data-based smart regulations.

This regulation is expected to be able to accelerate the investment process as well as close the gap in imports of products that are detrimental to the national industry. Simultaneously, the Minister of Industry also emphasized the importance of synergy across ministries and institutions.

For example, with the Ministry of Energy and Mineral Resources for energy supply, the Ministry of ATR/BPN for industrial land, the Ministry of Finance for fiscal incentives, the Ministry of Trade for trade policies and BRIN for research strengthening.

"The Ministry of Industry must not be passive. We must actively fight for the interests of the national industry in cross-ministerial forums," said Agus.

Another thing that has caught the attention of the Minister of Industry is strengthening the halal industry. The Ministry of Industry ensures coordination with the Halal Product Guarantee Administration Agency (BPJPH) and related ministries so that the halal certification process becomes a growth accelerator, not an obstacle.

"The halal ecosystem will be thoroughly developed from raw materials, production processes to product distribution, so that Indonesia can become the main producer of the world's halal industry," Agus explained.

The Minister of Industry continued, industrialization must be strongly connected between upstream and downstream sectors. The development of connectivity (backward-forward links) is the key to creating a value chain that strengthens each other between industries.

Agus gave an example of sectors such as palm oil and nickel as strengthening ecosystems from raw materials to downstream products capable of creating multiplier effects for the national economy. For this reason, concrete supporting factors are needed such as the availability of raw materials, logistics infrastructure, sustainable energy, competent human resources, research and innovation, and smart regulations," said Agus.

The man who was born in Jakarta, January 3, 1969, gave an example of sectors such as palm oil and nickel as strengthening the ecosystem from raw materials to downstream products to be able to create multiple effects for the national economy.

"For this reason, concrete supporting factors are needed, such as the availability of raw materials, logistics infrastructure, sustainable energy, competent human resources, research and innovation and smart regulations," said Agus.

In addition, Agus revealed a lesson from the results of visits to various countries, such as Japan, China, and Turkey. He highlighted Japan, which has succeeded in building an algae-based industry to support the green economy.

Then, China developed a coal to chemical technology to strengthen energy independence. Meanwhile, Turkey protects the domestic market while growing pride in domestic products.

From these various visits, the Minister of Industry assessed that Indonesia needs to build a thematic industrial area that integrates bioindustry, clean energy and petrochemicals to create a global competitive innovation center.

"SBIN is an important foundation in the journey of realizing Astacita and Indonesia Gold 2045. Industrialization is not merely pursuing economic growth, but for national sovereignty, equitable development and people's welfare," he added.