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Research for structural transformation

Industrial Policy Lab Indonesia is a think tank focused on advancing Indonesia’s reindustrialization agenda.

We believe that a prosperous, green, and sovereign Indonesia can only be built on a strong industrial foundation: an industrial Indonesia.

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Commentary / 30 June 2026

Message from Bonn: The Fight Over Climate Finance is Also a Fight Over Green Industrialization

Bambang Trihadmojo

“The question of who finances this transition is separate, and history offers a clear answer. Major industrial transformations have rarely been driven by private capital alone. South Korea used state-directed credit to build globally competitive steel and shipbuilding industries, while China’s solar manufacturing sector expanded through sustained public banking support long before private investors entered at scale. Today, the European Union follow a similar model through extensive subsidies and public support for clean technology manufacturing. These cases demonstrate that the state absorbs the early risks that private markets are unwilling to take and thereby creates the conditions for new industries to emerge and grow.”
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Indonesian N-250 aircraft prototype
N-250 ·

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Why industry matters

The Challenge of Premature Deindustrialization

Since the start of the millennium, Indonesia's industrial base has steadily thinned, weakening the country's capacity to generate decent jobs and durable sources of growth. Conversely, Indonesia has increasingly relied on the export of commodities to drive growth.

While this model has delivered windfalls during boom years, it is becoming less reliable in a world shaped by decarbonization imperatives and intensified geopolitical competition.

Three Strategic Imperatives

Sustainable reindustrialization is central to addressing the three critical challenges facing Indonesia.

Economic Development

Creating decent jobs at scale and stimulating prosperity through productive employment and rising real incomes.

Geopolitical Resilience

Maintaining Indonesia's sovereignty in economic decision-making and developing supply chain resilience amid growing geopolitical tensions.

Climate Crisis

Developing the industrial foundations for Indonesia to meet its net-zero commitments and capture competitive advantage in the low-carbon economy.

From evidence to policy

What We Do

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Research

We study industrialization, structural transformation, industrial finance, and the institutional foundations of productive capability.

Policy Advocacy

We seek to bring evidence-based industrial policy ideas into policymaking and public debate.

Civil Society Engagement

We work to broaden public understanding of industrial policy and help build a wider constituency for just and sustainable structural change.

Our institutional foundation

Entity Information

Industrial Policy Lab Indonesia operates under Yayasan Transformasi untuk Negeri, a non-profit foundation registered under Indonesian law.

Yayasan Transformasi untuk Negeri is a legally registered entity with Certification Number AHU-000692.AH.01.04.Tahun 2026, issued by the Ministry of Law of the Republic of Indonesia.

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For inquiries and partnership requests, please reach out to us via contact@industrialpolicylab.id