Indonesia, the main target area of this project, is a rapidly growing economy with an annual growth rate of around 6% in the last years. The Government of Indonesia sees the development of the country in the processing of natural resources and has called in international companies to help to industrialize the country. Industrialization can show success within a few years only with special commitment from the education sector.Based on the needs analysis made in Indonesia by INDOPED project partners, a number of challenges related to higher education have been identified. In most universities teaching still seems to be based on a teacher-centered approach. Students don’t get enough contacts with companies during their studies. Therefore there is a great need to modernize Indonesian pedagogical practices to meet the requirements of working life.The overall aim of the INDOPED project is to raise the teaching capacity of Indonesian University teachers that they will be enabled to bring the Higher Education to the European standard. Teachers should be able to compete in the league of World Class Universities, as Indonesian University rectors have written in their objective agreements with the Indonesian Ministry of HE. The quality of teaching is considered the major factor towards modern and competitive higher education. We see that teachers role should be more like a mentor and facilitator of learning, not a teacher in the traditional meaning. We strongly believe that active University-enterprise cooperation, which gives students more possibilities to enhance their competencies in real working life situations, is a key for more efficient as well as cost-effective higher education. During the INDOPED project we shall test and adjust European active learning practices and embed the most valuable ones into the structures of Indonesian partner universities. Effective dissemination will make the results available for Universities ASEAN wide.