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.