Asia Global Institute

Indonesia’s incomplete industrial strategy

Tuesday, March 4, 2025

Indonesia’s incomplete industrial strategy

Keun Lee, AGI Senior Fellow, co-authors an article in Project Syndicate arguing that Indonesia's industrial strategy, while attracting foreign direct investment (FDI), is flawed.

The ban on unprocessed nickel exports spurred growth in nickel processing and related sectors, but lacks provisions for local ownership, leaving foreign companies in control. Unlike Malaysia's strategy for palm oil, which promoted local ownership, Indonesia's focus on local content through import restrictions is insufficient without boosting local SMEs' technological capabilities. For true economic progress, Indonesia must prioritize local ownership.

Read the full article here.

Author

Keun Lee

Senior Fellow, Asia Global Institute

Keun Lee

ASIA GLOBAL INSTITUTE

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