India–Indonesia Tech Alliance: IndiaTechZone proposed to Drive Next-Gen Manufacturing in Indonesia 

Jakarta, 25 April 2025 — The Indonesia Economic Forum, in collaboration with the Ministry of Investment and downstream industry/(BKPM), PT Jababeka Tbk, and the Embassy of India in Indonesia, hosted a high-level forum titled “The Innovation Edge: India–Indonesia Collaboration for a Future-Ready Economy” at the Nusantara Room, Ministry of Investment and Downstream Industry (BKPM) in Jakarta. The forum convened distinguished government officials, industry leaders, and innovators, including Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstream Industry, who delivered the keynote address.

At this event, Indonesia and India announced a collaborative roadmap that will strengthen bilateral cooperation in technology, industry and human resource development. The forum resulted in proposing a variety of concrete initiatives, led by government representatives, industry players, and the Indian Embassy.

In his keynote address, Nurul Ichwan, emphasized the importance of working with India in achieving Indonesia’s Vision 2045. “Competition is the main driver of the future. And competition will be won by those countries who have been competing with us in a very good way. So that’s why Indonesia is thinking about this collaboration with India. We have to appreciate India, and we have to learn more from India. Because India, to some extent, are some steps ahead of Indonesia in terms of technological advancement.” He noted that the collaboration between India and Indonesia will play a central role in driving industrial transformation and skilling at scale. He added “In India, you have good technology. Despite the very large population, creativity and innovation are a part of technological development, which finally has led to India being recognized in the global stage. This is something that Indonesia needs to learn. We have to sit together and we have to work together.”

Nurul Ichwan, stated that Indonesia is currently at a pivotal moment to accelerate its industrial growth—not only through capital but also through the enhancement of human resources and technology transfer. “We all know that Indian talent is heading some of the largest technology companies all over the world. We can learn and benefit from the Indian experience and hence we strongly support initiatives like this which offer cross-sector collaborations. Indonesia cannot move forward alone—collaboration is the key to achieving our 2045 vision.”

Nurul Ichwan also emphasised that one of the policies coming from the Indonesian government is to develop downstream industry as a priority towards industrialization, which is impossible to achieve without technology. This is a strong reason for Indonesia to invite many countries such as India that have very advanced technology and are willing to work together with Indonesia.

Following the keynote address by Nurul Ichwan, which set the tone for a bold, collaborative vision between Indonesia and India, the event transitioned into a high-level panel discussion session, moderated by Sachin V Gopalan,. The session brought together distinguished leaders from industry, investment, and innovation ecosystems to explore how bilateral partnerships —anchored by initiatives like the IndiaTechZone and India SEZ—can accelerate Indonesia’s transformation into a future-ready economy.

The panel included esteemed speakers: H.E. Sandeep Chakravorty, Ambassador of India to Indonesia; Cahyo Purnomo, Director of Promotion for East Asia, South Asia, the Middle East, and Africa at the Ministry of Investment and Downstream Industry; S.D. Darmono, Founder and Chairman of PT Jababeka Tbk; Dr. Ilham Akbar Habibie, Chairman of the Indonesian Engineers Association (PII); and Shinta Widjaja Kamdani, Chairwoman of the Indonesian Employers Association (APINDO). Together, they unveiled a bold new chapter in India–Indonesia relations, underscored by deepening economic, technological, and strategic cooperation.

IndiaTechZone: Building The Largest Industrial Innovation Hub in Indonesia

The flagship announcement was the proposed establishment of the IndiaTechZone in Jababeka Industrial Estate, Cikarang, a groundbreaking initiative to be developed in partnership with PT Jababeka Tbk. Designed as a next-generation hub, the zone plans to integrate up to 30 state-of-the-art Indian technologies and serve as an open innovation platform for industrial collaboration. IndiaTechZone will serve as an industrial innovation center where Indian startups and tech firms can test and implement real-world solutions by providing collaboration space for Indian and Indonesian startups with local industries.

It will also feature a technical skilling center offering short-term courses and certifications tailored to emerging industry needs. To further nurture talent and public engagement, the zone will host industrial tourism experiences for university students, school groups, factory managers, and entrepreneurs, promoting cross-cultural learning and fostering future-ready industrial capabilities.

India’s Ambassador to Indonesia, Sandeep Chakravorty noted, “The IndiaTechZone is planned to be not just a technology showcase—it will be a display of India’s commitment to Indonesia’s industrial transformation. This will be the world’s first permanent display of Indian technologies on an industrial scale.” Ambassador Sandeep highlighted the significance of the IndiaTechZone in advancing bilateral ties and fostering economic development. He remarked, “The moment I mention this to companies and investors, they get very, very excited.”

Ambassador Sandeep also mooted the possibility of setting up a Fast-Track Mechanism for Investments where multi-ministerial meetings led by BKPM could be held periodically to review the investments of India into Indonesia and vice-versa. He said that India already had such a mechanism with France and Germany, two of the biggest economic partners of India and that it serves as a good platform for regular exchanges to sort out any business issues of companies through government intervention.

Chairman and Founder of Jababeka Group, S.D. Darmono, emphasized the strategic importance of the IndiaTechZone project for regional economic development. “This zone is not only about physical infrastructure. It will be a platform for empowering people, youth, and entrepreneurs. We will think big and start small, but we have to move fast. We have to focus on a small area, like we started in 1989, thirty six years ago with the concept that small is beautiful. And then we must build the ecosystem in that area.” Darmono also remarked, “Many people in Indonesia actually recognize the advanced development of India.”

National tech leader and Chairman of the Institution of Engineers Indonesia (PII), Ilham Habibie welcomed the support from premier engineering education  institutions from India, “The world is today going through a new phase which I call Re-Industrialization. Major countries are trying to bring back the past glory of manufacturing prowess. Indonesia too needs this and for that we need innovations that are not just large-scale but also applicable for MSMEs and startups. An innovation hub like this can truly serve as an accelerator.”

Chairman of the Indonesian Employers Association (APINDO), Shinta Kamdani also affirmed, “We have not focused enough on the need for technical skilling of our workforce at large scale. This collaboration will create new value chains in industrial development—not only in capital but also in talent and ideas.”

A notable milestone is the signing of an MoU between Aptech from India and Orbit Future Academy from Indonesia, to offer skilling courses to students and existing workforce of the manufacturing industry.

CEO and Founder of the Indonesian Economic Forum, Sachin V Gopalan added,  “This is not just a forum; it’s the beginning of a new chapter in industrial cooperation. We are building the ship while sailing—and India is a key partner in this journey.” He added that the IndiaTechZone aims to mark a significant step in bilateral relations. “At the very base of it all, 8% economic growth, which President Prabowo Subianto is aiming for, cannot not happen without a strong industrialization narrative. And to create industrialization in today’s world, where there is high economic value, you need high-end technology. Hence, the role of technology becomes even more important in today’s world. For countries who are developing industrialization, it becomes very important to choose not only the right technology, but also the best quality technology” he stated. Sachin emphasized the transformative potential of bilateral innovation corridors to unlock inclusive growth and elevate Indonesia’s position in the global value chain.

India SEZ: A Special Economic Zone for Indian Industries

Jababeka is planning the development of an India Special Economic Zone (SEZ), designed as a dedicated area for Indian companies to establish manufacturing plants and technical services hubs in Indonesia. This zone is expected to serve as a production base integrated with the ASEAN market. This will accelerate Foreign Direct Investment (FDI) inflows and facilitate technology transfer as well as streamline administrative processes and create a favorable investment climate for Indian companies to set up in Indonesia. These developments are positioned to play a pivotal role in boosting long-term FDI from India, which reached USD 173.1 million in 2024 according to the BKPM annual report, and will contribute to Indonesia’s national target of achieving 8% annual economic growth through high-value industrialization.

Shinta Widjaja Kamdani, spoke on the broader investment and policy impact. “The current global geo-political situation is actually a wake-up call for Indonesia. Because we have actually done many structural reforms based on recent developments, but we know that the problem lies in the implementation.” She also emphasized that beyond policy design, financing remains a critical hurdle for many businesses. “There are companies that want to invest, that’s one thing. But there are companies who need to find third party financing. And sometimes the financing does not come together with the investment.”

Cahyo Purnomo, emphasized the importance of maintaining strong relationships with existing investors, particularly in the context of investment cooperation between Indonesia and India. “For us, to be able to meet our target or even exceed our target, it’s always important to engage with the existing investors, with the constant investors and many others.” Cahyo Stated “We are catering mostly to East Asia and South Asia—with India, of course, being the most important country in South Asia. And it’s always important for us, when we carry out our activities, to keep in mind our investment realization target. Last year, we were able to reach a little over 100 million US dollars, not only from foreign interest but also domestic direct interest in Indonesia”

Dr. Ilham Akbar Habibie, a leading voice in Indonesia’s innovation landscape, underscored the value of cross-border knowledge ecosystems. “We know that India also has a strong automotive industry and I think there’s a strong point in collaborating in that sector. It’s not just adding just another brand but there is room for innovation whereby I think Indonesia’s dream for many years has been to have a national automotive brand, and India and Indonesia could collaborate to create a national brand.” Habibie stated. “So innovation is one of the core platforms of our future collaboration that we should further strengthen together.”

BKPM to Launch India Desk to Facilitate Investment

To ensure a smooth, proactive, and investor-friendly climate, the Ministry of Investment (BKPM) announced their intent to establish a dedicated India Desk—a strategic step to deepen bilateral engagement and facilitate seamless entry for Indian businesses into the Indonesian market. This specialized unit will offer tailored facilitation and advisory services, addressing the unique needs of Indian enterprises, both established investors and new market entrants. From providing regulatory and policy guidance to assisting with licensing, land acquisition, and operational setup, the India Desk intends to serve as a one-stop service center committed to delivering end-to-end investment support. Its creation reflects Indonesia’s commitment to fostering trust, reducing barriers, and accelerating the realization of impactful India–Indonesia joint ventures in key sectors such as manufacturing, digital technology, pharmaceuticals, and renewable energy.

Shinta Kamdani, who is the main initiator of the India Desk in her capacity as Special Advisor to BKPM, remarked, “The India Desk will not just solve problems—it will build an ecosystem. We need a single window that connects to all ministries.”

Cahyo Purnomo, BKPM’s Director of Promotion for East Asia, South Asia, Middle East and Africa also emphasized, “We are here to assist investors from entry to expansion. Our doors are always open.”

Lifestyle and Cultural Eco-System for the Indian Community

As Indian business presence grows, supporting services will also need to be developed, including Indian restaurants, cultural centers, and Ayurvedic clinics—a traditional Indian wellness system that emphasizes holistic treatment for body, mind, and soul. Talks are underway with established and reputed companies like Ganesha Ek Sanskriti Restaurant, Ayurvedagram Bali, Zen Monk, Lyfline, and IndoFringe Festival of Performing Arts. These efforts aim to enhance the quality of life for the Indian community in Indonesia and to encourage Indian professionals and families to relocate to the region.

Movieland and Bollywood: Collaboration in Film Production and Training

In a creative economy breakthrough, Indonesia Movieland, Indonesia’s film production hub set in Jababeka Cikarang, is also ready to collaborate with Indian training institutions and Bollywood entities to establish an academy focused on technology based film production services. This initiative aims to position Indonesia as a regional destination for cinematic talent development, offering training in everything from directing and scriptwriting to post-production and digital effects using advanced technologies such as Generative AI.

Towards Concrete Action

The forum thus marks not only a milestone in the India–Indonesia bilateral relationship but also a forward-looking commitment to co-creating a resilient, innovation-driven, and future-ready economy. By harnessing the collective strengths of both nations—India’s technological prowess and capital with Indonesia’s vast market potential and industrial ambition—the partnership is poised to drive sustainable development, regional stability, and inclusive growth. “Let’s start small, but never be afraid to think big,” concluded Darmono. “And most importantly, don’t wait for perfection to begin,” added Sachin Gopalan.

As both countries align their visions toward 2045 and beyond, initiatives like the IndiaTechZone, India Special Economic Zone, and the India Desk will stand as pillars of a new era of collaboration—grounded in mutual respect, shared prosperity, and strategic foresight.