Indonesia Promotes Transparent and Sustainable Industrial Policies at OECD 2026

RRI.CO.ID, Jakarta - Coordinating Minister for Economic Affairs, Airlangga Hartarto, said Indonesia is pushing for a paradigm shift in global industrial policy from merely being a protectionist instrument to a driver of transparent, competitive, and sustainable innovation. He made the statement at the Organisation for Economic Co-operation and Development (OECD) Ministerial Meeting (PTM) 2026 in Paris.

The Minister further said that industrial policy transformation is necessary to address the challenges of global productivity slowdown, geopolitical tensions, as well as the acceleration of digital transformation and energy transition.

In the forum, Indonesia shared the success of its downstreaming program, which was able to increase the export value of minerals and steel from around US$5 billion in 2016 to US$30 billion in 2025.

According to him, the achievement shows that the right industrial policies can create significant economic added value for developing countries, while also strengthening national competitiveness.

Nevertheless, the OECD delegates remind that the increase in industrial policy spending, which has reached 16% in the past four years, needs to be balanced with good governance. This is important to avoid market distortions and dependency on subsidies.

The OECD also introduced the "three tests" standard for governments in designing industrial policies, namely, they must target real market failures, have a clear exit strategy, and operate within an open market framework that encourages innovation and competition.

Indonesia also reaffirms its commitment to accelerating industrial transformation thru the Making Indonesia 4.0 program by integrating artificial intelligence (AI) and the Internet of Things (IoT) technologies into the manufacturing sector, which employs more than 20 million workers.

"Global industrial transformation must align with a just energy transition. International synergy is no longer an option, but a necessity to ensure inclusive and sustainable economic growth for the entire global community," Airlangga said in his written statement, Thursday, June 4, 2026.