Indef urges Indonesia's government to accelerate manufacturing export growth through AI adoption and supply chain digitization. M Rizal Taufikurahman, Head of Indef's Macroeconomics and Finance Center, stresses urgency amid slowing export growth—just 2.3% YoY in Q1 2026. Pilots in Batam, Surabaya, and Karawang cut customs processing from 72 to under 12 hours. A national digital logistics platform launches in October 2026, targeting 4,200 SMEs by end-2027. Digital manufacturing is projected to drive 41% of Indonesia's $282 billion digital economy by 2030.
According to bernas.id, the Institute for Development of Economics and Finance (Indef) has called on the Indonesian government to accelerate export-supporting strategies for the manufacturing sector—specifically through artificial intelligence adoption and supply chain digitization.
Urgent Policy Shift Required
M Rizal Taufikurahman, Head of the Macroeconomics and Finance Center at Indef, emphasized that timely intervention is critical. He stated that current export performance remains below potential due to structural inefficiencies in production coordination, customs processing, and logistics integration. According to the report, manufacturing contributed 19.8% to Indonesia’s GDP in 2025, yet export growth in this sector slowed to 2.3% year-on-year in Q1 2026, well below the national target of 7.5%.
AI and Digital Supply Chain as Core Levers
Indef proposes deploying AI-powered demand forecasting tools and blockchain-enabled traceability systems across key industrial clusters—including Batam, Surabaya, and Karawang—to reduce lead times and customs clearance delays. The source states that pilot implementations in these regions have already cut average documentation processing from 72 hours to under 12 hours. A national digital logistics platform, scheduled for phased rollout starting October 2026, aims to integrate over 4,200 SMEs into a unified data ecosystem by end-2027.
Economic Impact and Investment Alignment
The report links supply chain digitization directly to export competitiveness. It cites analysis showing that manufacturers using integrated digital procurement and inventory systems achieve 37% faster order fulfillment and 22% lower unit logistics costs. Indef further notes that Indonesia’s digital economy contribution is projected to reach Rp 4.500 Triliun ($282 billion) by 2030, with manufacturing digitization accounting for over 41% of that value creation.
“The government must accelerate strategies that boost manufacturing exports—AI and supply chain digitization are no longer optional but essential accelerants.” — M Rizal Taufikurahman, Head of the Macroeconomics and Finance Center, Indef
Implementation Roadmap and Capacity Gaps
Indef recommends three priority actions: (1) establishing AI training hubs in vocational universities across Java and Sumatra; (2) offering tax incentives for SMEs adopting certified digital supply chain platforms; and (3) harmonizing data standards across ministries—including the Ministry of Industry, Ministry of Trade, and Directorate General of Customs and Excise. The source states that only 14% of Indonesian manufacturing SMEs currently use cloud-based ERP systems, compared to 68% in Vietnam and 82% in Malaysia. To bridge this gap, Indef estimates an annual investment need of Rp 1.2 trillion ($75 million) over five years for infrastructure, upskilling, and interoperability certification.
Source: bernas.id
Compiled from international media by the SCI.AI editorial team.
