Jakarta (ANTARA) - Indonesia is seeking a greater role in semiconductors, artificial intelligence (AI), data centers, aerospace, and energy technology.
Participation in these industries requires the ability to monitor trade in goods and technologies that can serve both civilian and military purposes.
Without a clear regulatory framework, companies face uncertainty over licensing requirements, while trading partners need assurances that sensitive technologies will not be diverted to unauthorized users.
These concerns have prompted Indonesia to develop a Strategic Trade Management (STM), a framework for controlling trade in dual-use goods and technologies.
The framework is intended to minimize the risks of diversion and misuse of strategic technologies without unnecessarily restricting trade.
STM is becoming increasingly relevant as Indonesia's trade in electronic products expands. Exports of semiconductor devices and electronic integrated circuits reached around US$4.1 billion in 2025, up from US$1.5 billion in 2024.
These figures illustrate Indonesia's growing participation in technology trade, although they do not indicate how much of that trade involves items specifically covered by export controls.
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Trust and market access
Trade in strategic technologies requires more than compliance with tariffs, technical standards, and customs procedures. The government needs to establish who will ultimately receive a product, how it will be used, and whether it could be diverted to unauthorized parties.
STM therefore requires a consistent system for product classification, risk screening, end-user verification, licensing, and enforcement.
Clear procedures are equally important for companies that rely on components and technologies from multiple countries in a single production process.
These requirements are closely linked to trade relations between Indonesia and the United States. Under the Agreement on Reciprocal Trade (ART), signed on February 19, 2026, Indonesia's commitment to implement STM forms part of the bilateral agreement.
STM implementation is also consistent with Indonesia's commitment to United Nations Security Council Resolution 1540, which seeks to prevent non-state actors from acquiring weapons of mass destruction.
These commitments make strategic trade controls part of Indonesia's broader economic relationship with its partners. Implementation will determine the country's ability to meet control requirements for certain goods associated with strategic technologies.
The regional dimension is also gaining prominence. The United States is encouraging Indonesia to serve as a model for STM development among ASEAN member states. The Philippines, ASEAN's 2026 chair, has also identified an ASEAN leaders' declaration on STM as an economic priority.
These developments suggest that strategic trade controls are becoming part of regional cooperation discussions. For companies operating across borders, more aligned procedures could reduce uncertainty as goods and components move between jurisdictions.
The benefits, however, depend on compatible rules, effective oversight, and clear procedures in each country.
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Efficient oversight
Indonesia's immediate challenge lies in implementing the STM framework effectively. Inadequate controls could increase the risk of misuse and undermine trading partners' confidence.
Conversely, cumbersome or unclear procedures could raise compliance costs, delay transactions, and disrupt industries that depend on imported components.
Trade Minister Budi Santoso has said STM will be introduced gradually, giving businesses and relevant institutions time to adapt. The government also plans to adopt a risk-based approach so that strategic trade controls are enforced without obstructing legitimate commerce.
This approach needs to translate into clear distinctions between high-risk and low-risk transactions.
Transactions presenting significant risk indicators require closer scrutiny, while those meeting regulatory requirements and posing low risks should be subject to simpler procedures.
Ali Murtopo Simbolon, Deputy for Trade and Digital Economy Coordination at the Coordinating Ministry for Economic Affairs, also highlighted STM's role in supporting industrialization.
Speaking at the Indonesia Strategic Trade Management Summit in Jakarta in September, Simbolon said STM was becoming more relevant as technology advanced and was needed to support Indonesia's entry into high-tech industries.
Business input is also essential to identify operational conditions, industrial needs, and potential implementation bottlenecks. Companies need accessible guidance on product classification, required documentation, licensing authorities, and processing stages and timelines.
Without such clarity, STM could create further uncertainty as the government is seeking to improve the investment climate and trade efficiency.
Indonesia already has digital infrastructure that could support this integration through the Indonesia National Single Window (INSW), which electronically connects government services related to exports, imports, and logistics.
STM development and the Indonesia Single Risk Management system should also be integrated into broader efforts to strengthen the national trade system. Such integration could link licensing, customs, and risk-screening data.
However, a digital platform alone is insufficient. The government needs to ensure that data can be shared across agencies, responsibilities do not overlap, and inspections are not duplicated because of inconsistent requirements.
Clear classification of dual-use goods is another fundamental requirement. Businesses need to determine early in a transaction whether a product requires a special license and how to meet end-user requirements.
The government should also provide accessible consultation services and technical guidance to prevent inconsistent interpretations of the rules.
At the same time, strengthening the technical capabilities of frontline personnel is essential. Controlling dual-use goods requires an understanding of product and technology characteristics, and the ability to assess the intended purpose of transactions and the parties involved.
Without adequate expertise, enforcement could become inconsistent.
Ultimately, clear classification rules, well-defined institutional responsibilities, predictable processing times, integrated data, and adequately trained enforcement personnel will determine whether STM can achieve both of its objectives: controlling the risk of strategic technology misuse while keeping legitimate trade moving.
If designed proportionately, STM could help create a more predictable and trusted trading environment for technology industries.
For Indonesia, that certainty would help expand partnerships, attract investment, and strengthen its position in global technology value chains.
*Martha Herlinawati Simanjuntak is a journalist at the ANTARA News Agency
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of the ANTARA News Agency.
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