Minister of Industry: Economic Diplomacy is Key to Strengthening National Industrial Competitiveness
MAY 12, 2026
Strengthening the competitiveness of the national industry remains a government priority in facing the dynamics of an increasingly competitive global economy. These efforts are pursued through the development of targeted international cooperation to attract quality investment, expand market access, accelerate industrialization, and encourage technology transfer alongside capacity building for industrial human resources.
"Synergy between ministries plays a strategic role in ensuring that the national industrial development agenda aligns with the direction of Indonesia's economic diplomacy. Strong industrial policies must be supported by an effective international cooperation network so that domestic industrial potential can be optimized," said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta, Thursday (18/12).
As part of these efforts, the Ministry of Industry (Kemenperin) is strengthening collaboration with the Ministry of Foreign Affairs (Kemenlu) in developing international cooperation, promotion, and facilitation of industrial investment. This collaboration is expected to become an important instrument in supporting the acceleration of value-added and export-oriented national industrialization.
In this regard, Kemenperin, as the formulator and implementer of national industrial policy, plays a central role in preparing the direction and priorities of industrial development. Meanwhile, Kemenlu plays a role in optimizing economic diplomacy and international relations through the network of Representative Offices of the Republic of Indonesia abroad.
The strengthening of this synergy is realized through the signing of a Memorandum of Understanding (MoU) between the Ministry of Industry and the Ministry of Foreign Affairs on Synergy in Strengthening International Cooperation, Promotion, and Investment Facilitation in the Development of National Industry. The signing was conducted by Tri Supondy, Director General of Industrial Resilience, Regions and International Access (KPAII) of the Ministry of Industry, and Daniel Tumpal Sumurung Simanjuntak, Director General of Economic Relations and Development Cooperation of the Ministry of Foreign Affairs.
Director General of KPAII, Tri Supondy, emphasized that this Memorandum of Understanding is a concrete step to strengthen the connectivity of the national industry with global networks.
"Through this cooperation, we ensure that national industrial development policies and priorities are directly connected with Indonesia's economic diplomacy strategy. Synergy with the Ministry of Foreign Affairs will strengthen the access of domestic industries to international markets, quality investment, and sustainable technology transfer opportunities," he said.
This Memorandum of Understanding serves as a strategic framework to ensure that national industrial policies are integrated with the direction of Indonesia's foreign policy and economic diplomacy. Through this cross-ministerial synergy, the government seeks to strengthen the structure of the national industry amid global challenges.
"This cooperation focuses not only on promotion but also on facilitating investments that directly impact value addition, technology transfer, and strengthening the structure of the national industry," said the Minister of Industry.
This Memorandum of Understanding is designed to accelerate the implementation of several priority programs, including accelerating downstreaming and industrialization through increased foreign investment in industrial estates. In addition, this cooperation supports Indonesia's participation as a Partner Country at the INNOPROM 2026 event in the Russian Federation.
The scope of cooperation in the agreement covers the coordination and synchronization of national industrial policies with foreign policies and international economic relations. Both ministries are also committed to providing mutual support for national strategic agendas in the industrial sector, including the planning, implementation, and evaluation of medium and long-term industrial policies.
The Minister of Industry mentioned that the policy focus will be directed at priority issues such as downstreaming, increasing value addition, industrial productivity, strengthening industrial human resources, and accelerating technology transfer. These efforts are considered crucial to increasing the resilience and competitiveness of the national industry in a sustainable manner.
This cooperation also includes the targeted, integrated, and planned promotion of national industrial investment potential to international partners by leveraging the network of representative offices of the Republic of Indonesia abroad. The Minister of Industry considers this step highly strategic to expand the reach of promotions while increasing global investor confidence in Indonesia's investment climate.
Furthermore, strengthening the facilitation of international cooperation is expected to open opportunities for strategic partnerships with partner countries and global industrial players. The exchange and integration of data, regulations, policies, and promotional materials for industrial potential are also part of this cooperation to support data-driven, credible policy-making and promotion.
To ensure the effective implementation of cooperation, this agreement will be followed up through cooperation agreements or other forms of technical cooperation as needed. In addition, a Joint Committee will be formed to monitor and evaluate the implementation of cooperation on a regular basis.
This agreement is valid for five years from the date of signing and can be extended, amended, or terminated based on mutual agreement. The Minister of Industry emphasized that strengthening this synergy is an important part of the government's efforts to accelerate national downstreaming and industrialization.
"Undoubtedly, this cooperation will yield positive outcomes that can expand the access of the national industry to global networks, and ensure that the interests of the national industry are strongly articulated in Indonesia's economic diplomacy," concluded the Minister of Industry.
