On 20 October 2025, the Indonesian Business Council (IBC) held an in-depth discussion with the Lembaga Penyelidikan Ekonomi dan Masyarakat, Universitas Indonesia (LPEM UI), to examine Indonesia’s economic landscape amid shifting global and geopolitical dynamics. The conversation highlighted the importance of a multidimensional research approach integrating economic, social, and geopolitical perspectives to better understand structural challenges and policy trade-offs. It also emphasized that research should serve as a key instrument for shaping coherent, forward-looking strategies to enhance productivity, strengthen institutions, and build national competitiveness.
The dialogue explored how global uncertainties, evolving trade dynamics, and capital flows movements intersect with domestic structural issues such as low productivity, informality, and uneven industrial performance. Strengthening Indonesia’s competitiveness requires more than short-term stimulus; it calls for institutional reform, regulatory clarity, and renewed efforts to build business confidence.
The discussion also highlighted the need to improve the ease of doing business, streamline regulations, and enhance coordination across fiscal, financial, and sectoral policies. These measures are essential to reduce transaction costs, increase investment certainty, and unlock private-sector dynamism across regions and industries.
Another important focus was on raising productivity through innovation, skills upgrading, and the diffusion of technology, particularly among small and medium enterprises (SMEs) and regional economies beyond Java. Improving logistics, advancing energy transition planning, and strengthening value chain integration were identified as critical steps toward building resilience and achieving inclusive growth.
Amid rising geopolitical tensions and global supply chain realignments, the dialogue noted Indonesia’s opportunity to capitalize on its position as a key regional economy by maintaining policy credibility, ensuring legal certainty, and deepening collaboration between business and government.
IBC reaffirmed its commitment to convening strategic discussions and translating insights into practical recommendations that support a more competitive, resilient, and sustainable Indonesian economy.