RRI.CO.ID, Jakarta - Indonesian Minister of Industry Agus Gumiwang Kartasasmita emphasized that industrial investment must strengthen the structure of the country's national industry, saying that the policy direction places the development of domestic industrial capacity as the primary objective of incoming investment.

Minister Agus stated that investment should not stop at the flow of financial capital alone. It must deliver tangible benefits through technology transfer and the strengthening of domestic supply chains.

Furthermore, national investment policy is designed to ensure active participation of local industries within the production ecosystem. This approach aims to enhance Indonesia’s industrial competitiveness on the global stage.

“The type of investment we encourage is that which brings know-how, technology, and genuine involvement of local industry players. Indonesia does not want enclave-style investments, but those that are closely connected to the domestic industrial ecosystem,” Minister Agus said in a press statement in Jakarta, Friday, January 23, 2026.

He warned that isolated investments risk failing to provide long-term added value. The government, therefore, promotes stronger linkages between local industries and global production networks.

Minister Agus noted that this policy direction aligns with President Prabowo Subianto’s message at the 2026 World Economic Forum (WEF) in Davos, where Indonesia was positioned as a stable, credible, and long-term investment partner.

At the forum, the President highlighted the establishment of Indonesia’s sovereign wealth fund, Danantara Indonesia, which is designed to accelerate industrialization and national economic transformation.

“Danantara is the foundation of Indonesia’s partnership with global investors. We are offering investment opportunities that focus on creating added value for the national industry,” the Minister explained.

He stressed that quality investment will be directed toward priority industrial sectors, which are considered crucial for deepening the structure of Indonesia’s industry.

Minister Agus also underlined the importance of involving small and medium industries. These enterprises are being integrated into the supply chains of larger industries through facilitation programs.

“In addition to promoting technology transfer, the Ministry of Industry is strengthening SME participation through incentives based on domestic components. This ensures that investment benefits are directly felt by local industry players,” Minister Agus said.

He added that new investments must also contribute to vocational education and workforce skill development, as human resource strengthening is a vital part of Indonesia’s industrialization strategy.

Minister Agus believes that integrating Indonesian industry into global value chains will reinforce the country’s economic position. Global collaboration, he said, opens the door to sustainable industrialization opportunities.

“This global collaboration will unlock major investment opportunities for industrialization and human development in Indonesia. This step is in line with the government’s Asta Cita vision,” Minister Agus remarked.

Earlier, President Prabowo Subianto affirmed that the Danantara Indonesia Investment Authority (BPI) is an equal partner for global investors. This position is supported by Danantara’s capacity, which now manages assets worth up to USD 1 trillion.

The President noted that this scale places Danantara on par with other leading global sovereign wealth funds. He conveyed this in his speech at the 2026 WEF Annual Meeting, Thursday, January 22, 2026.

“With Danantara, I can stand here before you as an equal partner,” the President said, emphasizing that Danantara was established to co-invest and foster shared growth with global partners.

According to the President, this capacity makes Danantara a potential key financier of strategic projects in Indonesia, particularly in the industrial sector. This initiative aligns with the government’s commitment to accelerate industrialization and drive economic growth.

“We will invest together and grow together with you. Danantara was founded to finance the industries of the future. We are determined to significantly industrialize our nation,” the President declared.

He further assured that Danantara will be managed professionally in line with international standards, stressing the importance of strong oversight and accountability.

As part of governance reforms, the government will rationalize the number of state-owned enterprises (SOEs). From the current 1,044 SOEs, the number will be reduced to around 300 companies.

President Prabowo also expressed his intention for Danantara’s leadership to be filled by top-tier executives. The government is even opening opportunities for global talent, including foreign nationals, to occupy strategic positions.

“This is the way we are running Indonesia today, from social programs to downstreaming natural resources, and from efforts to achieve food security to energy independence,” the President concluded. (Diva Rifdah/Sri Wahyuni)