Strengthening Downstream Natural Resources Strategic Steps of the Government for Economic Equality

By: Arsenio Bagas Pamungkas )*

Economic equality that is just throughout Indonesia is now increasingly prominent as the main goal set by the government. This commitment is not just a promise, but has begun to be seen through various strategic programs, especially strengthening the downstreaming of Natural Resources (SDA).

The government under the leadership of President Prabowo is working on concrete steps to ensure that Indonesia’s natural wealth can bring positive economic impacts to the wider community, from Sabang to Merauke.

This downstreaming initiative is expected to be the key to boosting economic equality, reducing inequality, and opening up employment opportunities for people in various regions.

The first prominent step is the development of basic infrastructure which is now starting to spread evenly to remote areas of the country. In this case, President Prabowo prioritizes development that is not only focused on urban areas, but also reaches remote areas.

Through adequate infrastructure such as highways, ports, and land, air, and sea transportation networks, accessibility increases, and the wheels of the economy are expected to turn faster. That way, local products from various regions can compete in a wider market, and ultimately increase the income of people in the region.

SOEs also play a central role in strengthening the national economy. SOE Minister Erick Thohir has emphasized the importance of SOEs as a balancer that can support the people’s economy. Erick instructed SOE leaders to continue to commit to programs that prioritize the empowerment of the people’s economy.

This people’s economy program has been running and has proven to be able to improve the welfare of many small and medium business actors. With competitive and strong SOEs, the domestic economy is expected to be more independent and stable in facing global challenges.

Not only that, the government’s focus is also on the agricultural and marine sectors, which are the backbone of the Indonesian economy. This program includes training for farmers and fishermen to increase their productivity. In the agricultural sector, for example, modern agricultural technology and subsidized fertilizers are provided.

In the marine sector, the government’s attention is directed at the development of sustainable fisheries, so that fishermen’s catches can be maximized. With this approach, it is hoped that communities in agricultural and coastal areas can feel the positive impact of these programs.

Each region in Indonesia has different economic potential, and this is what the government is utilizing with a local potential-based economic approach. In this policy, each region is encouraged to develop economic sectors that are in accordance with their natural and social characteristics.

For example, Sulawesi and Maluku, which are rich in marine products, are now receiving full support to develop the fish processing industry. Meanwhile, in Kalimantan and Sumatra, which have abundant natural resources, the focus is on downstreaming natural resources, so that added value to products can be created domestically. This strategy aims to empower local communities as the main economic actors, create jobs, and ultimately reduce economic inequality between regions.
Investment also plays a vital role in this economic equality effort.

The government is working hard to create a conducive investment climate in areas that have so far been neglected. By offering incentives and easy licensing for investors interested in investing in these areas, it is hoped that new jobs and technology transfer will be created that will accelerate local economic growth. Political stability and tightly guarded security are also additional attractions for investors to be more confident in investing their capital in Indonesia.

Furthermore, the MSME sector is an important highlight. MSMEs have proven to be the backbone of the national economy, providing jobs and helping distribute the economy directly to the community. President Prabowo emphasized the importance of developing MSMEs by providing access to capital, training, and easy market access.

In today’s digital era, MSMEs are also encouraged to utilize digital platforms, so that they can reach wider consumers. With stronger and more resilient MSMEs, it is hoped that the local economy can recover, and local products will be able to compete in national and international markets.

Deputy Minister of Communication and Digital Nezar Patria added that one of the main challenges for MSMEs is limited access to digital technology. To answer this challenge, the government has designed a digital training and mentoring program for MSMEs.

This program aims to ensure that MSME actors have adequate digital skills, including in terms of internet mastery and use of computer devices. In the long term, this will help MSMEs to be more competitive and productive.

The government’s efforts in strengthening the downstreaming of natural resources show seriousness in achieving sustainable and equitable economic equality. With various strategies that have been implemented, including improving infrastructure, empowering MSMEs, developing the agricultural and marine sectors, and focusing on local economic potential, optimism for achieving economic equality in Indonesia is increasing.

Economic equality is not just a number or statistic, but a real step to open up opportunities and provide welfare for every level of society. Only with cooperation from various parties can economic equality, which is a shared dream, be realized, making Indonesia more prosperous and equitable for all.

)* The author is a contributor to the Persada Institute

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