Jakarta – The government continues to strengthen its downstreaming policy as a driving force for national economic growth and job creation. The Ministry of Investment/Investment Coordinating Board (BKPM) recorded that investment realization in the downstreaming sector throughout 2025 reached IDR 584.1 trillion, representing 43.3 percent annual growth. This figure represents 30.2 percent of the total national investment realization in 2025, which reached IDR 1,931.2 trillion, exceeding the government’s target.
Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani stated that the downstream investment achievement demonstrates investor confidence in government policies that consistently encourage increased domestic added value. He stated that downstreaming not only increases state revenue but also significantly contributes to Indonesia’s labor absorption. “Downstreaming has a significant economic impact, creates jobs, and sustainably drives the national economy,” Rosan said.
According to BKPM data, the mineral and coal sector was the largest contributor to downstream investment, valued at Rp373.1 trillion. This contribution came from nickel (Rp185.2 trillion), copper (Rp65.8 trillion), bauxite (Rp53.1 trillion), iron and steel (Rp39.2 trillion), tin (Rp11.3 trillion), and other commodities (Rp18.5 trillion). Furthermore, the plantation and forestry sector recorded downstream investment of Rp144.5 trillion, with palm oil and logs being the main contributors.
Rosan emphasized that the government will accelerate the downstreaming of palm oil and bauxite by 2026, as it is considered to have a significant multiplier effect on the economy and the workforce. He explained that downstreaming bauxite to aluminum requires significant investment and has the potential to absorb a large workforce. “We will continue to encourage downstreaming of palm oil, and bauxite will also increase. This year, bauxite will enter the aluminum stage, and aluminum investment is quite significant,” Rosan said.
In addition to the mineral and plantation sectors, downstreaming is also being carried out in the oil and gas, fisheries, and maritime sectors. In the oil and gas sector, downstreaming encompasses oil and gas processing, while in the fisheries sector, commodities such as salt, tuna, skipjack tuna, mackerel, shrimp, seaweed, swimming crab, and tilapia are also being explored. This sector diversification is considered capable of expanding the national industrial base and creating job opportunities in various regions.
Overall, national investment realization in 2025 increased by 12.7 percent annually and successfully absorbed 2.71 million workers, representing a 10.4 percent increase compared to the previous year. Rosan emphasized that this achievement is concrete evidence that investment and downstream processing go hand in hand in creating jobs. “This represents job creation stemming from a total investment of IDR 1,931.2 trillion in 2025,” he concluded.
