Korea Cooperates with Indonesia on Accelerating Economic Transformation

TEMPO.CO, Jakarta - Indonesia's Ministry of National Development Planning has forged a cooperation with the Korea Industry Intelligence Association (KOIIA) on accelerating economic transformation through an innovation-based partnership.

Indonesia is focusing on the 2025-2045 Long-Term National Development Plans (RPJPN) with the target of achieving the world’s fifth-biggest gross domestic product (GDP), according to a statement from the ministry on Wednesday.

One of the sectors that becomes the focus of Indonesia’s economic transformation for realizing the Golden Indonesia 2045 vision is the manufacturing sector, where the role of the manufacturing industry is crucial, the statement said.

In general, this cooperation aims to accelerate Indonesia’s economic transformation agenda, especially in three aspects: innovative economic development, research and innovation as the basis for economic activities, and joint activities on technology and expertise transfer.

Specifically, this cooperation encourages the development of the blue economy and manufacturing sectors through cooperation in the research and innovation ecosystem, research commercialization, and industry innovation.

In the 2025-2045 RPJPN, Indonesia’s target for the manufacturing sector's contribution to the GDP reaches 28 percent. The blue economy sector, utilizing marine natural resources, is projected to increase its contribution to the GDP from 7.92 percent in 2022 to 15 percent in 2045.

This cooperation is expected to accelerate development and drive national economic transformation in line with the 2045 Golden Indonesia vision.

Vice Chair of KOIIA Kim Tae Hwan stated that his association will play a role in supporting the increase in added value in Indonesia’s industry products through the optimization of digital technologies, such as the internet of things (IoT), big data, and artificial intelligence (AI).

“Without technological innovation, the industry sector will not be competitive and possess a high added value,” he stated.

The KOIIA is an association under the South Korean Ministry of Trade, Industry, and Energy. It was established in August 2015 and has around 400 member companies. The association runs various projects to encourage digital transformation in several industry sectors.

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