The Government of Indonesia has officially begun preparing for its participation in World Expo 2025 Osaka as part of efforts to optimize investment opportunities in the sustainable manufacturing sector. The event is expected to be a window for the world to see the potential of Indonesia's industry, which is growing ever stronger in facing global challenges.
“World Expo 2025 Osaka will be an important moment to strengthen Indonesia's position as a key player in global industrial supply chains. Indonesia's participation in Expo 2025 Osaka is not just a promotional event, but a strategic step in attracting quality investment to the national industrial sector,” the Director General of Resilience, Regional Development and International Industrial Access at the Ministry of Industry (Dirjen KPAII Kemenperin), Tri Supondy, said in Jakarta on Thursday (20/2).
In recent years, Indonesia's industrial sector has continued to show good resilience. Realized investment in 2024 reached IDR 697.5 trillion, up 23.4% from 2023. The largest investments in 2024 were in Basic Metals (IDR 231.1 trillion), followed by Food (IDR 104.1 trillion), Paper and Paper Products (IDR 77 trillion), Chemicals and Chemical Products (IDR 65.8 trillion), and Motor Vehicles, Trailers and Semi-Trailers (IDR 26.2 trillion). In terms of employment, in August 2024 the non-oil and gas industrial sector employed a high 19.96 million people, or 13.79% of the total workforce.
Meanwhile, subsectors such as food and beverages, basic metals, paper and paper products, chemicals and chemical products, and motor vehicles, trailers and semi-trailers also supported industrial growth. The competitive advantage of Indonesia's manufacturing industry is increasingly visible through rising exports and investment in the sector.
In addition, investment trends in the industrial sector continue to rise, reflecting investors' confidence in Indonesia's economic and industrial policies. Partner countries from Asia still dominate Foreign Direct Investment (FDI/PMA), with Singapore, China and Hong Kong as the largest investors. This increase in investment is in line with the government's efforts to create a conducive regulatory environment and provide incentives for businesses investing in strategic industrial sectors.
The government has implemented various industrial policies that encourage investment, including simplifying licensing through the Online Single Submission (OSS) system, providing tax incentives, and various downstreaming policies to increase the added value of domestic natural resources. The Making Indonesia 4.0 program also continues to be developed to accelerate industrial transformation based on digitalization and technological innovation.
To support environmentally friendly industrial development, Indonesia is also focusing on green industrial estates. The government is encouraging the development of Eco Industrial Parks (EIPs) that adopt sustainability, energy efficiency and renewable energy. This step not only increases the competitiveness of national industry, but also makes Indonesia a sustainable manufacturing hub in Asia. It is also in line with Indonesia's commitment to achieving the Sustainable Development Goals (SDGs), especially inclusive, innovative and sustainable industrial development. By promoting green industry, Indonesia seeks to reduce carbon emissions and improve social welfare by creating more and better jobs.
Indonesia's participation in World Expo 2025 Osaka is also expected to open new opportunities for cooperation, especially in the electric vehicle, semiconductor, pharmaceutical, automotive, shipbuilding, metals, chemicals, and rubber and tire industries. Japan, one of the main partners in the industrial sector, has shown its commitment to expanding cooperation in technology and human resource development.
Besides Japan, Indonesia is also exploring cooperation with other countries participating in Expo 2025 Osaka, such as the United States, Germany, China and European countries. Through economic and industrial diplomacy, the government seeks to expand export markets while attracting more investment into the country.
Indonesia's participation in World Expo 2025 Osaka affirms the government's commitment to strengthening national industrial competitiveness. By making use of this global platform, Indonesia has a great opportunity to increase investment in various strategic sectors. “We are optimistic that World Expo 2025 Osaka will bring real benefits to national industry and further strengthen Indonesia's position on the global industrial stage,” Tri concluded.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia