DPD RI Pushes Revision of Industrial Law to Address Global Dynamics and Strengthen National Competitiveness

29 June 2026 oleh admin

Bandung, dpd.go.id – Committee IV of the House of Regional Representatives of the Republic of Indonesia (DPD RI) held a validation forum for the Academic Paper and Draft Bill on the Amendment to Law No. 3 of 2014 on Industryat the Bandung Institute of Technology (ITB) on Monday (June 29). The forum served as an important platform for academics, industry stakeholders, and regional government representatives to provide substantive input for improving Indonesia's industrial regulatory framework.

Representing the Rector of ITB, Prof. Dr. Ir. Tirto Prakoso, M.Eng., Ph.D., Dean of the Faculty of Industrial Technology, emphasized that strengthening industrial regulations is an urgent priority.

"Industry is a key pillar of national development. Indonesia needs a stronger regulatory framework that can comprehensively address the evolving needs of the industrial sector," he said.

He also expressed appreciation to DPD RI for collaborating with ITB in the validation process and reaffirmed the university's commitment to advancing Indonesia's industrial development.

Vice Chairperson of DPD RI Committee IV, Elviana, highlighted the urgency of revising the Industrial Law, which has been in force for more than a decade.

"Changes in the strategic environment and the dynamics of the global economy require us to refine the existing regulatory framework so that it remains relevant and adaptive. Many emerging challenges are not yet accommodated under the current law," she said.

She noted that issues such as digital transformation, industrial data protection, digital talent development, and innovation incentives should be strengthened in the revised law to ensure Indonesia remains competitive in the global marketplace.

Industrial Bill expert I Made Dana Tangkas stressed the importance of accurately identifying industrial challenges as the foundation for designing effective industrial policies.

Meanwhile, Prof. Dr. Ir. Joko Siswanto of ITB's Faculty of Industrial Technology underscored that the revision should position Indonesia higher in the Global Value Chain by accelerating the transition toward Industry 5.0, fostering greater competitiveness and resilience. "Industrial human resource development must become a central component of the revised law to ensure that industrial transformation does not widen workforce disparities," he said.

Representing the business community, Farhan Aqil Syauqi of the West Java Chamber of Commerce and Industry (Kadin Jawa Barat) argued that the revised Industrial Law should serve as a strategic instrument for strengthening Indonesia's competitiveness through domestic market protection and fair competition policies.

"Transforming Indonesia into a globally competitive manufacturing powerhouse requires a robust industrial ecosystem, downstream industrialization, and continuous innovation," he stated.

Professor of Manufacturing Systems at ITB, Prof. Drajat Irianto, added that the amendment should not only focus on protecting domestic industries but also on enhancing national industrial capabilities to master strategic technologies, reduce carbon emissions, strengthen small and medium industries (SMIs), and improve resilience against geopolitical risks.

He also emphasized the need for more comprehensive provisions on industrial financing institutions, noting that commercial banks generally prioritize short-term financing over long-term industrial investment.

From the regional government's perspective, Meidy Mahardani, S.T., M.Sc., of the West Java Provincial Office of Industry and Trade, explained that the manufacturing sector remains the backbone of West Java's economy, contributing 39.6 percent to the province's Gross Regional Domestic Product (GRDP) and accounting for 26.8 percentof Indonesia's national industrial output.

However, he pointed out that the province's heavy reliance on imported raw materials and the dominance of assembly-based exports underscore the need for industrial transformation that generates greater value-added production.

"The amendment should strengthen the industrial ecosystem as a whole to attract more investment, create high-quality jobs, and accelerate the transition toward green industry," he said.

Closing the forum, Elviana expressed her appreciation for the valuable recommendations contributed by participants.

"The insights and recommendations from our distinguished speakers and academics will make a significant contribution to refining the Draft Bill amending Law No. 3 of 2014 on Industry, initiated by Committee IV of DPD RI," she concluded.