Previous issue review
Economic Overview of Indonesia in 2025 (Part One) : Macroeconomics
Indonesia’s Economic Overview in 2025 (Part II) : Key Industries
Economic Overview of Indonesia in 2025 (Part 3) : Infrastructure
In the previous issues, we jointly examined Indonesia’s strong macroeconomic pulse, dynamic key industries, and rapidly evolving infrastructure construction. These elements together depict an Indonesia with unlimited potential. However, what drives all this forward continuously is the clear and grand national top-level design behind it.
In this issue, we will delve deeply into Indonesia’s national development plan, revealing to you the development blueprint and core opportunities of this island nation for the next two decades.
Grand Blueprint: “Golden Indonesia 2045” Vision
The cornerstone of all of Indonesia’s development strategies is its ambitious national vision of “Golden Indonesia 2045”. This vision sets a clear goal: by 2045, the 100th anniversary of the independence of the Republic of Indonesia, to enable Indonesia to join the ranks of the world’s top five economies and enter the threshold of high-income countries.
To achieve this grand goal, the vision has established four core pillars: human resource development and technological innovation, sustainable economic development, fair development among regions, and strengthening national resilience and governance capacity. This is not merely an economic growth plan, but a comprehensive development blueprint covering society, technology and governance, setting the general course for Indonesia’s future voyage.
To turn this grand blueprint into reality, the Indonesian government is breaking it down into executable actions through a series of interlocking key strategic measures.
Key strategic initiatives: The Engine Shaping the Future
I. Made in Indonesia 4.0: A Practical Path to Industrial Modernization
“Making Indonesia 4.0” is the core strategy of the country’s industrial transformation and the key path to achieving the economic development goals in the vision of “Golden Indonesia 2045”. This strategy aims to leverage the country’s resource and labor advantages to drive Indonesia’s transformation from a raw material exporter to a high value-added manufacturing country and deeply integrate into the global industrial chain.
Its development path emphasizes leveraging Indonesia’s resource endowment and vast human resource advantages, giving priority to the development of five key industries: food and beverage, textile and apparel, automobiles, electronics, and chemicals. By enhancing the quality of basic industrial products and the quality of the labor force, this plan is systematically promoting the overall upgrading of Indonesia’s industry. It is worth mentioning that the plan is well-equipped and has simultaneously released clear documents such as policies, budgets and roadmaps, demonstrating extremely high operability.
II. Industrial Downstream: From a Resource Exporter to a Manufacturing Powerhouse
If “Made in Indonesia 4.0” is the blueprint for industrial upgrading, then the “Industrial Downstream” strategy is the core engine for its economic transformation. This national policy aims to change Indonesia’s long-standing status as an exporter of raw materials. By restricting or prohibiting the export of raw minerals (such as nickel, bauxite, copper, etc.), it forces the processing and refining of minerals within Indonesia, thereby climbing up the value chain.
The most successful example is undoubtedly the nickel mining industry. By banning the export of raw nickel, Indonesia has attracted huge investment in just a few years and has leaped to become the world’s largest producer of stainless steel and an indispensable part of the electric vehicle battery industry chain. In the future, this policy will continue to be extended to more fields of natural resources, exerting a profound impact on the supply chains of global manufacturing, new energy and high-tech industries, and also creating unprecedented opportunities for investors in related fields.
III. Infrastructure Planning: Nearly 190 billion US dollars in investment opportunities
Modern infrastructure serves as the hardware support for realizing industrial blueprints and national visions. The Indonesian government is well aware that whether it is promoting industrial development or building the new capital “Nusantara” (IKN) to promote regional balance, large-scale infrastructure investment is indispensable. According to data released by Indonesia’s Ministry of Finance, during the period of the country’s medium-term development plan from 2020 to 2024 alone, the demand for funds for infrastructure construction amounts to as much as 450 billion US dollars. Among them, the central government of Indonesia is expected to bear 37% of the budget, while local governments and state-owned enterprises are expected to bear 21%. This means there is a huge funding gap of about 42% (nearly 190 billion US dollars), which needs to attract private and overseas capital to fill.
To this end, Indonesia is actively creating favorable conditions for investors by optimizing the investment environment and establishing a sovereign wealth fund (INA), among other measures. This is undoubtedly a clear and alluring signal for international capital seeking to participate in Indonesia’s development.
In the next issue, we will introduce to you “Indonesia’s Economic Overview 2025 (Part 5) : Economic and Trade Agreements”, delving into the various important trade agreements that Indonesia has participated in and how they bring tariff preferences and market access conveniences to enterprises going global.
-End-
Settle in the Wanxinda Industrial Park of the Batang National Economic Special Zone in Indonesia
In the current context of the global trade landscape’s reconstruction, waiting and seeing is the most expensive strategy!
As the largest economy in ASEAN, Indonesia is providing a “zero-delay” production start-up solution for its manufacturing industry with a combination of national-level special economic zones and spot standardized factories.
1. Tariff breakthrough
Relying on the Indonesia-ASEAN Free Trade Area (AFTA) and the Regional Comprehensive Economic Partnership (RCEP), enjoy zero-tariff export treatment for 90% of goods within the region.
2. Cost-locked win
Tax policies: Enterprises in special economic zones enjoy 15 years of corporate income tax reduction and exemption (exemption for the first 5 years and halving for the following 10 years), and all tariffs on imported equipment in bonded zones are waived.
Labor costs: The proportion of workers under the age of 25 is 38%, and the average monthly salary in the manufacturing industry is only one third of that in China.
Energy security: The electricity price is approximately 0.5 RMB, with a peak price of 0.75 RMB.
Employee social security: The medical insurance premium is paid by both the enterprise and the employee at 1% of the salary, the endowment insurance is paid by the enterprise at 8.4% of the salary, and the work-related injury insurance is paid by the enterprise at 0.24% of the salary. (Less than 10% in total
3. Spot goods get a head start
1 million square meters of high-standard factory buildings in Batang Special Economic Zone, Central Java Province, are available for immediate use.
Complete supporting facilities
Close to the expressway
Green and energy-saving factory building
“One-stop” service
At this moment, what is scarcer than “cost depressions” is the resource of “strategic springboards”.
Please contact the Wanxinda investment promotion team immediately to obtain a customized implementation plan – starting when others are hesitant is the true dimension reduction competition!
The bilingual (Chinese and English) specialist of the Management Committee of the Special Economic Zone in Central Java Province, Indonesia, responds 24/7
