Increasing Competitiveness of Leading Industry Subsectors

Industrial sector is an important sector due to its function as employment generator and creator of value that will ultimately reduce poverty. Indonesia has a very unique comparative advantage that can be used as an asset for industrialization. With abundant natural resources, including plantations, agriculture, maritime and mining, Indonesia actually has the potential to create higher value from its natural resource products. However, development of natural resource-based industries has not been optimal. Indonesian industrial and service export growth has lagged behind its peers. Most of the exports are still commodity-based with limited value creation, while dependency on imported raw material is still high. The involvement of national industries in the global production networks is also still very limited. Going forward, sustainable industrialization in Indonesia will strongly depend on the ability to create industrial subsectors that are able to create jobs, are highly efficient and productive, and add value to natural resource optimally; transitioning toward excellence, and one that is able to compete in international markets.


Job creation, comparative advantage, industrial competitiveness, export, import dependency, global supply chain, investment climate, efficiency and productivity, innovation and excellence, international competitiveness.

Sub-theme exploration

  1. Best practices to develop leading industrial subsectors
  2. Strategies to promote the growth of labor-intensive industries amid global competitiveness
  3. Map of strengths and challenges of Indonesian leading industrial subsectors amid global competition
  4. Role of industrial resources (production factor input) in increasing productivity and creation of high-tech industrial product exports
  5. Learning from other countries: development strategies of leading subsectors to join global production networks
  6. Accelerating the downstreaming of natural resource-based industries: strategies for increasing added value, and integration of upstream and downstream industry
  7. Strategies to promote industrial innovation to increase competitiveness
  8. Development of modern manufacturing services (manuservices) sector to increase competitiveness.