Jakarta, 24 January 2024: Dr Lili Yan Ing, ERIA’s Lead Advisor for Southeast Asia Region, Dr Rashesh Shrestha, ERIA Economist, Dr Yessi Vadila, ERIA Trade Specialist, and other ERIA colleagues recently met with Dr Marco Kamiya, the UNIDO (United Nations Industrialization Development Organization) Representative for Indonesia, Timor Leste, and ASEAN Affairs at the ERIA Office.

Dr Kamiya brought forth two ideas. First, he discussed an analytical tool aimed at supporting industrial productivity transformation in Indonesia, with a particular focus on entrepreneurship and SME policy. Additionally, he emphasised the importance of resource mobilisation for Special Economic Zones (SEZs) to promote trade, foreign direct investment, and the urban ecosystem. This becomes crucial considering the prospective development of Indonesia’s new capital city (Ibu Kota Nusantara, or IKN) soon. Key collaborators for these projects include the World Bank, Global Climate Funds (GCF), and Global Environmental Facility (GEF).

In response to Dr Kamiya’s ideas, Dr Shrestha suggested that the least developed country in ASEAN – Lao PDR – needs to catch up with ideal industrialisation. Dr Kamiya illustrated this point by referencing the case of Serbia, where technological advancement was achieved through the integration of universities and industrial labour market information, leading to the generation of high-quality human capital. These solutions could also be applicable to developing countries, including the proposed new capital city in Indonesia, attracting high-quality individuals seeking job opportunities. The potential development of a digital hub could also be implemented in Indonesia.