Regulation of the President on Industrialization Strategy Sets Out New Incentives

The Ministry of Industry is finalizing Regulation of the President (“Regulation”) on the New National Industrialization Strategy (“SBIN”) as a broad framework for industrial development. Director-General of the Metal, Machinery, Transportation Equipment, and Electronics Industry (“ILMATE”) Setia Diarta stated that this policy is designed as a legal framework to strengthen and safeguard the national manufacturing sector amid global challenges.

“We are currently in the process of preparing the Regulation containing the new national industrialization strategy,” said Setia.

The SBIN will be based on six main pillars of industrial development, ranging from strengthening industrial structure and downstreaming to institutional strengthening, regulation, and green industry. The main focus is on promoting green incentives as part of the industrial transformation toward a sustainable production system.

Through this scheme, the government is preparing various fiscal incentives aimed at attracting investment and encouraging industries to switch to low-emission and energy-efficient technologies. These green incentives serve as a crucial instrument in supporting the manufacturing sector’s decarbonization agenda, while simultaneously enhancing the competitiveness of products in the global market.

The implementation of this strategy will focus on several priority commodities within the ILMATE sector. These include solar panels, drones, radar, nickel, copper, gold, iron and steel, medical devices, transportation equipment, and electronic components. This sector holds significant potential for driving the growth of technology-based and sustainable industries.