Jakarta – The Head of the Central Statistics Agency (BPS), Amalia Adininggar Widyasanti, revealed that the economies of several regions in Indonesia have shown significant growth thanks to the implementation of the downstreaming program. The regions’ success in shifting their economic structure from the primary sector to the processing industry has proven to drive greater contributions to national economic growth.
“This is because there is a process of creating added value within their economies through downstreaming or industrialization,” Amalia said at the Regional Inflation Coordination Meeting in Jakarta.
Amalia cited the success of Central Sulawesi and North Maluku as provinces that have successfully implemented downstreaming. Furthermore, Amalia explained that the processing industry is a major driver of economic growth in North Maluku and West Papua.
In North Maluku, economic growth in the first quarter of 2025 was recorded at 34.58% year-on-year (yoy), driven by the presence of the ferronickel industry. Meanwhile, West Papua experienced 25.53% year-on-year growth due to the development of the oil and gas refining industry and the addition of the Tangguh LNG Train 3 refinery.
“This industry, it turns out, for relatively small economies, can be a driving force and a booster for the region’s economy, potentially reaching double digits,” Amalia continued.
She also compared the economic structure of North Maluku in 2010 and 2025. In 2010, the agricultural sector contributed 26.27% to the North Maluku economy, while the processing industry only contributed 5.67%. However, by 2025, agriculture contributed only 10.64%, while the processing industry jumped dramatically to 36.18%.
“Therefore, the economic structure can be changed in the future with solid policies,” Amalia said.
Meanwhile, the Chairperson of Commission II of the Central Kalimantan Provincial DPRD, Siti Nafsiah, stated that her region is currently transitioning from dependence on the primary sector to a more robust economic structure through downstreaming. She emphasized the importance of accelerating economic transformation toward downstream processing.
“The raw material-based economic structure is considered to be less than optimal in driving sustainable growth, so downstream processing is a strategic solution. It’s time for Central Kalimantan to shift to downstream processing,” said Siti.
According to her, downstream processing of commodities such as palm oil, rubber, rattan, and other agricultural products will create job opportunities, strengthen regional competitiveness, and enhance local economic resilience.
She urged the Central Kalimantan Provincial Government to immediately establish a new development policy direction that supports the development of the processing industry sector, including providing infrastructure, simplifying licensing, and providing technical training.
“Downstream processing is not just an option, but a strategic necessity that must be addressed with integrated policies and concrete support,” she concluded.
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