Downstream Natural Resources and Industrialization: Prabowo-Gibran’s Program to Create Jobs and Economic Justice
By: Tio Hardianto)*
The President and Vice President-elect, Prabowo Subianto and Gibran Rakabuming Raka, have set the natural resource downstreaming and industrialization program as the main priority in driving more inclusive and sustainable economic growth. This effort is not only focused on increasing the added value of natural resources, but also creating jobs and economic justice for the people of Indonesia. Through this strategy, it is hoped that dependence on raw material exports can be reduced, while the potential of domestic natural resources is maximized.
Indonesia is the largest producer and owner of the largest nickel reserves in the world. As much as 55 million tons, or 42% of the total global nickel reserves, are stored in Indonesia. This puts Indonesia in a strategic position to lead the global market in the nickel industry, especially in the development of clean energy technologies such as electric vehicle batteries.
One of the main focuses of the Prabowo-Gibran government is to ensure that nickel downstreaming runs sustainably. The government has the ambition to achieve economic growth of 8% by utilizing nickel potential as the main driver. In this effort, nickel downstreaming is considered crucial, considering the positive impacts that have been seen since the ban on raw nickel exports in 2020.
Deputy Chairman of the Prabowo-Gibran National Campaign Team (TKN), Eddy Soeparno, stated that sustainable nickel downstreaming is a key pillar in achieving the economic target. Indonesia has great potential to lead the global market in the development of electric vehicle batteries, along with the increasing demand for clean energy in the world. Of the total 130 million tons of world nickel reserves, 55 million tons or 42% are stored in Indonesia. This nickel downstreaming is not only important for increasing added value, but also plays a role in supporting the energy transition through the electric vehicle ecosystem.
In 2023, Indonesia contributed 55% of the global nickel supply. This figure is expected to continue to increase to 64% in 2024, along with the increasing capacity of the domestic nickel processing industry. The impact on the Indonesian economy has also begun to be felt, especially in terms of job creation and increasing foreign exchange.
This nickel downstreaming program is part of a broader strategy, namely industrialization. The Prabowo-Gibran government is committed to encouraging industrialization based on local potential and abundant natural resources. One of the strategic platforms prepared to support this is the Domestic Product Utilization Increase Business Meeting (P3DN). This program aims to increase the use of local products in industry, while creating a stronger industrial ecosystem amidst the development of the digital era.
According to the Minister of Communication and Information, Budi Arie Setiadi, the P3DN Business Meeting is a concrete step in strengthening local industries and accelerating economic growth based on domestic products. This program is relevant to one of the missions of the Prabowo-Gibran government, namely continuing downstreaming and industrialization to increase added value domestically. The P3DN program is expected to create an ecosystem that supports the growth of new industries, reduces dependence on imports, and strengthens Indonesia’s position in the global market.
One of the real impacts of this downstream and industrialization program is the creation of significant jobs. Smelters established in nickel-producing areas, for example, have opened up many job opportunities for local communities. Not only that, the downstream industry that has developed around the nickel sector has also created a positive domino effect for the local economy.
The development of industrial infrastructure in remote and underdeveloped areas is an important part of this strategy. By developing new centers of economic growth, the Prabowo-Gibran government hopes to distribute the benefits of development more evenly. This step is expected to reduce the economic gap between urban and rural areas, as well as strengthen the foundation of a more inclusive economy.
In this context, downstreaming and industrialization programs not only provide positive economic impacts, but also play an important role in creating social justice. Infrastructure and industrial development in previously marginalized areas will provide access for local communities to actively participate in economic activities.
In addition to creating jobs, the downstream and industrialization program is also designed to support a sustainable economy. Indonesia, with its abundant natural resources, has great potential to develop environmentally friendly industries. The Prabowo-Gibran government has reaffirmed its commitment to encouraging the development of clean energy technology, especially in the context of the electric vehicle ecosystem.
Nickel downstreaming, which plays an important role in the electric vehicle battery supply chain, is one of the strategic steps to realize the energy transition in Indonesia. This program is also in line with the world’s need for cleaner and more environmentally friendly technology. By utilizing the potential of nickel as the main ingredient of electric vehicle batteries, Indonesia has a great opportunity to become a major player in the green technology industry in the future.
The natural resource downstreaming and industrialization program initiated by the Prabowo-Gibran government is a strategic step to create jobs, increase the added value of natural resources, and encourage inclusive and sustainable economic growth. Through this program, the government is not only focused on increasing the added value of natural resources, but also creating economic justice for all Indonesian people. With the right strategy, Indonesia can become a global industrial power that relies not only on natural resources, but also on innovation and technology that support sustainable development.
)* The author is an economic observer
