Indonesia Sets 2026 as Acceleration Year for National Industrialization
Jakarta, The Gulf Observer: Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, has affirmed that 2026 will serve as a decisive year for accelerating the country’s national industrialization program, urging all ranks within the ministry to move faster, adopt measurable strategies, and deliver concrete outcomes.
Speaking at the Ministry of Industry’s working meeting in Jakarta on Friday, the minister stressed that industrial, economic, and strategic self-reliance targets for 2026 have been raised significantly. He emphasized that every program must have clearly defined outputs, measurable indicators, and actionable plans.
“2026 is a year for resolving problems, locking in targets, and proving that the Ministry of Industry is capable of serving as the main engine of national economic transformation,” he said.
Agro-Industrial Downstreaming in Focus
As part of the acceleration strategy, the agro sector has been prioritized through expanded downstream processing aligned with food security, energy resilience, and the strengthening of raw materials for strategic industries.
For palm oil commodities, the minister instructed the establishment of a comprehensive traceability execution system, the preparation of a cluster-based readiness map for the national palm oil industry, formulation of a domestic supply risk map, and development of a monthly dashboard to monitor biodiesel feedstock, program allocations, and crude palm oil (CPO) prices.
For non-palm commodities, acceleration measures include identifying critical raw materials, implementing measurable import substitution projects, and strengthening at least three interconnected agro-downstream clusters across subsectors.
Strengthening IKFT and Textile Sectors
In the chemical, pharmaceutical, and textile industries (IKFT), the focus will be on reducing imports, strengthening employment, and enhancing energy competitiveness.
For the textile and textile products (TPT) sector, the ministry will establish a domestic market protection “war room” with weekly performance outputs. A machinery modernization program will also be implemented, supported by financing schemes, incentives, and productivity benchmarks.
Upstream petrochemical and basic chemical projects have been designated as “must win” initiatives aimed at addressing trade deficits, with progress to be monitored through weekly dashboards.
The pharmaceutical sector has been instructed to finalize a priority list of active pharmaceutical ingredients (APIs), prepare an import substitution roadmap, and execute strategic raw material projects in concrete terms.
Advancing ILMATE and High-Tech Industries
The minister also called for accelerating the transformation of the metal, machinery, transportation equipment, and electronics sector (ILMATE) from a consumer market base into a production and technology hub.
In the automotive industry, key measures include drafting a priority components map, identifying investment-based import substitution projects, fulfilling strategic component investment commitments, and preparing a phased roadmap for increasing domestic component levels (TKDN) in electric vehicles.
In the semiconductor sector, the ministry aims to strengthen the IC Design and Education Center (ICDEC) as a national anchor institution for chip design, formulate an integrated national semiconductor roadmap, and prepare dedicated industrial estates for electronics and semiconductor clusters.
Meanwhile, the metal and machinery sector will prioritize import substitution for key industrial machinery, while the electronics industry has been directed to ensure that the domestic market functions as a launching pad for local production rather than a dumping ground for imports.
Emphasis on Measurable Performance
To guarantee effective implementation, each priority program will be equipped with robust control mechanisms, including clear milestones, designated persons in charge (PIC), and measurable performance indicators.
The minister underscored that disciplined execution and coordinated action across sectors will be crucial to achieving Indonesia’s broader economic transformation goals by 2026.
