Antara News·Indonesia·Monday, October 26, 2026 at 05:12 PM UTC

Minister urges faster industrialization to escape middle income trap

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Shofi Ayudiana, Raka Adji

Jakarta (ANTARA) - Minister of Higher Education, Science, and Technology Brian Yuliarto highlighted the need for Indonesia to accelerate industrial development to tap into the demographic bonus and escape the middle-income trap.

Speaking at the Danantara Technology & Innovation Investment Forum (DTIIF) 2026 in Jakarta on Monday, Brian said the period leading up to 2045 will be a critical window for Indonesia, as the demographic dividend is expected to close around that time.

According to him, one key to escaping the middle-income trap is strengthening industrialization. Thus, he said, Indonesia must stop deindustrialization and boost industrial development.

Brian cited the experiences of South Korea, China, and India, which developed their industrial sectors as a key driver of economic growth.

"We must establish industries as quickly as possible; that is key. Once industries are in place, innovation will follow," he said.

Beyond accelerating industrial development, Brian stressed the importance of collaboration between businesses and universities in technological research and development.

He emphasized that academic research needed to produce innovations industries can use, rather than ending as mere scientific publications.

At the same time, he noted that industry players need to play a bigger role in funding and executing joint research with universities.

"We also want the industrial sector to collaborate with universities because in most developed countries, research funded by industry far outweighs government spending on research," he added.

Brian cited Türkiye as an example, noting that up to 70 percent of its research funding comes from the industrial sector.

The minister also emphasized the importance of increasing the number of graduates from the science, technology, engineering, and mathematics (STEM) fields to meet workforce needs in line with the development of science and technology-based industries.

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