Remarks by Sofyan Djalil, CEO of Indonesian Business Council (IBC)

The growing importance of the economic security narrative amid rising protectionist trends such as green protectionism, subsidies and tariffs is changing global trade and investment flows. A more active and multifaceted global trade strategy is essential to sustain Indonesia's economic growth. These strategies include promoting trade diversification, expanding markets and improving the country's export performance.

How can Indonesia effectively implement these strategies to meet the challenges and enhance its competitiveness in the evolving global trade landscape?

Putting Indonesia on a higher growth path requires greater participation of domestic and foreign investors in effective and productive investments. To achieve this, Indonesia needs to attract billions of dollars in investments to develop new economic growth drivers and identify key commodities while creating a comprehensive industrialization strategy.

What types of targeted investments are necessary to drive growth and maximize these benefits and how can they be channeled effectively?

Manufacturing accounts for nearly 19% of GDP, making it the largest contributor to the country's economy. The expansion and diversification of Indonesia's manufacturing base is more critical than ever to achieving the much higher GDP growth target set by President Prabowo. This requires much higher levels of domestic and foreign investment in the manufacturing sector, a more outward looking mindset among corporate Indonesia, the re-positioning of the country in the reshaping global supply chains for some strategic sectors such as EVs, metals and chemicals, and the upgrading of the country’s transport infrastructure. Which strategic priorities and initial measures will help accelerate the expansion of the country’s manufacturing sector?

Hosted by Indonesian Business Council (IBC) and Indonesia Climate Growth Dialogue (ICGD)

Climate crisis has impacted daily life, business and development—with the Paris Agreement requiring greater effort. Indonesia itself committed to reduce 30-48% GHG emissions by 2030 while the new Prabowo Administration aims for 8% annual GDP growth, necessitating effective ways to balance economic progress and environmental preservation. Carbon market, as a vehicle to achieve this, has room for improvement. Indonesia launched its carbon exchange in 2023, but the trade worth is targeted at $65 billion by 2028 from domestic and international transactions. The first day of trade opened to foreign buyers was on January 20, 2025, with over 41,000 tons of CO2 involved.

To accelerate such progress, Indonesia is in need of a new institutional arrangement for such climate finance and carbon markets. By early 2025, Indonesia is also expected to begin thinking about its contribution in the upcoming COP30.

This Roundtable is an avenue for such discussion between carbon market regulators, players and supporters. Co-hosting with Indonesia Climate & Growth Dialogue (ICGD), it is expected to provide thought-provoking call-to-action for leaders.

Indonesia's economic growth and competitiveness depend on the provision of secure, accessible, and affordable energy for the entire population. On the other hand, the country's commitment to a net-zero economy by 2060 requires the development of renewable energy sources and a more sustainable use of energy. How will Indonesia develop the initiatives and create the synergies to achieve both energy security and transition?

Ministerial Keynote: H.E. Bahlil Lahadalia, Minister for Energy and Mineral Resources of the Republic of Indonesia.

With a rapidly growing population and increasingly frequent extreme weather events disrupting global food supplies, Indonesia aims to become self-sufficient in food production. The gap between food demand and national production capacity has been growing as attested by the increase in imports of rice, wheat and wheat flour, sugar etc.

Pursuing the objective of food security and food self-sufficiency set by President Prabowo will require more investment in advanced technologies like precision irrigation and climate-resilient crops, but also in drones, IoT sensors, and data analytics, to improve production efficiency, reducing high costs of production, processing and distribution and high food losses due to deficient logistics infrastructure.

What are the government priority actions to move towards better food security? What should be the contribution of the government policies and the agribusiness sector initiatives to achieve food self-sufficiency?

Hosted by Deloitte and Indonesian Business Council (IBC)

The Indonesian government is committed to deliver 3 million affordable homes annually over the next five years to tackle the country's housing deficit. Ensuring access to adequate housing is not only a constitutional right for all Indonesians but also a driver of social and economic progress. Affordable housing improves quality of life and supports Indonesia’s broader economic growth objectives.

How can Indonesia effectively provide access to adequate housing for all households? This session will examine Indonesia’s housing landscape and past initiatives, while drawing on lessons learned from housing programs in selected countries. Insights from the benchmarking analysis will inform strategic recommendations and high-level actions to guide Indonesia toward a sustainable and inclusive housing future.

With internet penetration now close to 80% of the country’s population, Indonesia is now meeting a key prerequisite to accelerate its digital revolution, a key transformation to be achieved for the country to become a tech and innovation driven, better performing and more competitive economy. This without mentioning the tremendous social, financial, and business inclusion impact that happens in countries embracing this digital revolution. One key asset that Indonesia can leverage much more in accelerating its drive towards becoming a digital country is the existence of a vibrant, innovative startup ecosystem.

Another accelerating factor is a more intensive use of open-source technology solutions which are available and very cost-effective. However, several challenges need also to be met such as the overhauling of its digital infrastructure and the integration of scalable technologies which will allow it to adjust to new technological developments.

What government policies will help accelerate this much needed digital revolution? And how corporate Indonesia initiatives, along with increased R&D efforts from the academic world will create the multiplier impact to complement public sector policies?

In the midst of rapid technological development and the shift to digitalisation, human capital and skills development through a holistic strategy that includes government policies, an overhaul of the education system and the full involvement of the business sector is a sine qua non if Indonesia is to realize the full potential of its demographic dividend and the digital economy.

Addressing human development gaps and skills shortages is a national priority to ensure Indonesia's economic competitiveness and social mobility.

At a time of global instability and uncertainty, Indonesia’s foreign policy remains guided by the will to behave – and be seen - as a good neighbor in a fragmented and increasingly divisive world and an active contributor in promoting the kind of regional stability and cohesion most propitious to developing a shared prosperity. At the same time, and in a complementary way, Indonesia strives to expand its diplomatic, economic, and political role on the global stage through a greater involvement in multilateral and regional frameworks, by contributing more actively in shaping global standards and in positioning itself as a trustworthy partner.

How will this vision be translated into concrete actions? And in what ways will this heightened role on the regional and global stages support the country’s growth objectives and create new trade and investment opportunities?

Opening Remarks:

Jeffrey Sachs, President of the UN Sustainable Development Solutions Network & Director of the Center for Sustainable Development at Columbia University