<![CDATA[The global economy has increasingly integrated countries through trade, investment, technology transfer, and international production networks. In this context, the state plays a strategic role in enhancing national competitiveness through industrial policies, participation in Global Value Chains (GVCs), and industrialization. This study aims to analyze the role of the state in the global economy through Indonesia’s industrial policy, integration into Global Value Chains, and industrialization strategies. The research employs a qualitative approach using a literature review method by examining books, scientific journals, government reports, and relevant academic publications. The findings indicate that the state has a crucial role in creating a conducive industrial ecosystem through regulatory support, infrastructure development, investment facilitation, and human resource improvement. Indonesia’s participation in Global Value Chains has contributed to export growth, technology transfer, and industrial competitiveness. However, several challenges remain, including dependence on imported raw materials, technological limitations, low innovation capacity, and unequal industrial development across regions. To address these challenges, strengthening industrial policies, encouraging technological innovation, improving institutional capacity, and enhancing workforce quality are essential. The study concludes that effective state intervention remains necessary to support sustainable industrialization and strengthen Indonesia’s position in the global economy. Through integrated industrial policies and greater participation in Global Value Chains, Indonesia can increase its competitiveness and achieve more inclusive and sustainable economic development.]]>
