ERIA TradePAG Forum Highlights Policy Priorities to Strengthen Indonesia’s Value Chain Ecosystem
Jakarta, 30 September 2025: ERIA co-organised the 2025 Trade Policy Advisory Group (Trade PAG) Forum under the theme ’Strengthening the Ecosystem of Value Chains Domestically, Regionally, and Globally.’ The event, held at the Fairmont Hotel in Jakarta, brought together senior government officials, academics, private sector representatives, and policy experts to discuss strategies for building a more resilient, competitive, and sustainable value chain ecosystem for Indonesia.
Organised in collaboration with the Trade Policy Agency (TPA) of Indonesia’s Ministry of Trade and the International Trade Analysis and Policy Studies (ITAPS) of IPB University, the forum explored how Indonesia can reinforce its position in global and regional value chains (GVCs) amid rising economic uncertainties.
Global disruptions – from the COVID-19 pandemic to geopolitical tensions and protectionist trends – have underscored vulnerabilities in existing value-chain structures. Strengthening Indonesia’s networks is crucial not only for large industries but also for micro, small, and medium-sized enterprises (MSMEs), which make up 99% of Indonesian businesses and contribute more than 60% of GDP. However, many MSMEs continue to face barriers such as high production costs, limited access to finance, and regulatory hurdles.
The forum opened with remarks from Mr Naoto Okura, ERIA’s Director General for Research, and Mr Muhammad Suaib Sulaiman, Secretary of the Trade Policy Agency. Both emphasised the urgency of strengthening Indonesia’s value-chain ecosystem through improved infrastructure, streamlined regulations, and deeper regional integration.
The morning session featured Professor Shandre M. Thangavelu, who presented ’Global Trends and Disruptions in Value Chains.’ He discussed how digitalisation, automation, and Industry 4.0 technologies are transforming production systems, while regional frameworks such as RCEP and CPTPP are deepening integration. Discussants Dr Risti Permani and Dr Doan Thi Thanh Ha reflected on lessons from other economies, stressing the importance of balancing openness with domestic industrial priorities.
In the second session, Dr Eric Sugandi presented ’Factors Affecting Value Chain Participation: Lessons from China.’ He identified key enablers – trade openness, infrastructure, human capital, and regulatory quality – and drew parallels to Indonesia’s MSMEs, which often struggle with standards compliance, access to finance, and technology upgrading.
In the afternoon, Fithra Faisal delivered a presentation on ’Indonesia in the Global Value Chain: Position, Strengths, and Aspirations.’ He highlighted Indonesia’s reliance on resource-based exports while pointing to emerging opportunities in manufacturing and digital services. Discussants Dr Titik Anas and Ir Juan Permata Adoe called for reforms and stronger private sector partnerships to enhance competitiveness.
The final session featured Dr Ebi Junaidi, who discussed ’Bottlenecks and Strengths of Indonesia’s GVC Integration – Focus on MSMEs.’ He cited regulatory fragmentation, logistics inefficiencies, and financing gaps as persistent barriers while noting opportunities in digital transformation, trade facilitation, and public–private partnerships. Ms Lany Harijanti and Dr Zahra Murad underscored the importance of government–industry collaboration and coordinated capacity-building programmes to prepare MSMEs for deeper GVC participation.
Participants also highlighted ASEAN’s central role in fostering regional resilience and emphasised that digital and green transitions will define the future of GVCs. Strengthening Indonesia’s supply chain networks and MSME capabilities will therefore require coherent, multi-level strategies linking national, regional, and global priorities.
The Trade PAG Forum serves as a platform for experts to provide policy advice directly to the Minister of Trade, supporting evidence-based policymaking. Outcomes from the forum are expected to guide actionable recommendations to enhance Indonesia’s participation in value chains while promoting inclusive and sustainable growth.
This session marked the first in a two-part Trade PAG dialogue series. The next forum, to be convened later this year, will focus on navigating environment-related trade policies.
