“Protecting the domestic market is the highest priority. The reality shows that 80 percent of our industrial output is absorbed domestically, while only 20 percent is exported,” he said on Monday.
He explained that safeguarding the domestic market involves protecting four key demand drivers namely, the government, households, the private sector, and investment.
For the government, the scope of the Domestic Component Level (TKDN) policy must be expanded so that state spending can further support industrialization.
Meanwhile, for households and the private sector, it is necessary to strengthen purchasing power through protectionist measures.
“For investment, certainty in the domestic market is the main requirement for investors to commit,” Kartasasmita emphasized.
He believes that efforts are needed to strengthen trade barriers in the form of tariffs and non-tariff barriers, as well as reorganize ports of entry for imported finished products.
"Many of our industries are failing due to uncontrolled imports. This protectionist policy is not blind protection. The goal is to create space for national industries to grow, innovate, and ultimately become competitive," he continued.
Despite the focus on the domestic market, his party considers expansion into global markets remains crucial.
The minister mentioned that export market diversification must be strengthened, given the high geopolitical and geoeconomic uncertainty.
He added that several bilateral and regional trade agreements offer opportunities for Indonesia to join global supply chains that were previously hard to access.
“Industrial diplomacy must be enhanced. We must have the courage to position Indonesia not merely as an exporter of raw materials, but as a supplier of high-value manufactured products,” he stated.
Kartasasmita also highlighted the importance of orienting the battery-based electric vehicle (EV) industry toward exports.
“With our advantage as the world’s largest nickel producer, Indonesia has a great opportunity to become a key player in the global battery industry,” he concluded.
Related news: Ministry prioritizes domestic market security, export market expansion
Related news: Indonesia eases local content rules to support domestic industry
Translator: Resinta Sulistiyandari
Editor: Primayanti
Copyright © ANTARA 2025
