The Indonesian government is intensifying economic diplomacy to attract investment, broaden export markets, and improve human-resource quality—measures it sees as essential to strengthening national industrial competitiveness in today’s shifting global economy. Minister of Industry Agus Gumiwang Kartasasmita said enhancing industrial competitiveness is a top policy priority, achieved partly through targeted international cooperation. Such collaboration aims to draw high-quality foreign investment, speed up industrialization, expand market access, and enable technology transfer and workforce upskilling. Effective synergy among ministries also plays a strategic role in aligning industrial-development agendas with Indonesia’s broader economic-diplomacy objectives.
As part of this effort, the Ministry of Industry (Kemenperin) is deepening cooperation with the Ministry of Foreign Affairs to integrate diplomacy and industrial policy. The partnership formalized a memorandum of understanding focused on strengthening international cooperation, promoting and facilitating foreign industrial investment, and accelerating national industrialization that is value-added and export-oriented. The MoU provides a strategic framework to harmonize industrial policy with foreign-policy goals and economic diplomacy, contributing to initiatives such as downstreaming and attracting more investment in industrial zones. The collaboration goes beyond promotion efforts, emphasizing direct outcomes such as greater value addition, technology transfer, and stronger industrial structures to improve Indonesia’s competitiveness globally.
