Indonesia and Japan Strengthen Manufacturing Ties through Technology Transfer

Boosting Manufacturing Sector Contribution

Indonesia is targeting a significant increase in its manufacturing sector's contribution to GDP, aiming for 28% by 2045. This represents a substantial jump from the 18.3% recorded in 2022. To achieve this ambitious goal, the Indonesian government is implementing several key strategies, including productivity improvements, selective import restrictions, and increased local sourcing requirements.

Japan's Role in Supporting Indonesia's Manufacturing Ambitions

The Japan External Trade Organization (Jetro) is playing a crucial role in supporting Indonesia's manufacturing ambitions. Jetro is organizing the Japan Pavilion at Manufacturing Indonesia Series 2025, which will take place until December 6, 2025, at the Jakarta International Expo (JIExpo) Kemayoran. This initiative is designed to showcase Japan's advanced manufacturing technologies and facilitate investment between Indonesian and Japanese companies.

Key Focus Areas for Collaboration

1. Technology Transfer: Japan is well-positioned to support Indonesia's need for advanced manufacturing technologies.
2. Investment Promotion: The event aims to attract Japanese investment into Indonesia's manufacturing sector.
3. Industry Collaboration: The pavilion will serve as a platform for Indonesian and Japanese companies to explore potential partnerships.

Implications for Indonesia's Economic Development

The collaboration between Indonesia and Japan in the manufacturing sector is expected to have several positive impacts on Indonesia's economic development. These include job creation, technology transfer, and increased competitiveness of Indonesian manufacturers. By leveraging Japan's technological expertise and investment, Indonesia can accelerate its progress towards its 2045 manufacturing sector targets.