Government Accelerates Downstreaming to Strengthen Industrial Structure

Jakarta – The government is accelerating its downstreaming agenda as a core strategy to strengthen the national industrial structure and drive value-added economic transformation. The policy is aimed at reducing dependence on raw material exports while reinforcing Indonesia’s position in the global supply chain.

This commitment was reaffirmed by President Prabowo Subianto during the Business Summit at the US Chamber of Commerce in Washington, D.C., United States.

The President stated that the government has initiated 18 downstreaming projects this year as part of the acceleration of national economic transformation.

“We have just launched 18 downstreaming projects this year,” Prabowo said.

He emphasized that these projects form part of a broader strategy to increase the value added of natural resources, create jobs, and strengthen the foundation of domestic processing industries.

The government is also preparing a USD 3 billion waste-to-energy project to support environmental management and energy resilience.

The Head of State noted that strengthening processing industries is key for Indonesia to move up the global supply chain.

“We are moving very fast in all these sectors, and I believe for American companies, Indonesia will not only be an attractive market, but we hope it can also serve as a production base and be viewed as a strong strategic partner in the region,” he explained.

To support financing and accelerate implementation, Danantara Indonesia has been prepared as a primary driving force. Its CEO, Rosan Roeslani, emphasized that downstreaming is a strategic national agenda.

“In the initial phase, these projects are expected to deliver tangible positive impacts on Indonesia’s economy, both through industrial value creation and job absorption,” Rosan stated.

He added that downstreaming projects are expected to become the backbone of stronger, more sustainable, and globally competitive economic growth through collaboration among the government, state-owned enterprises, and strategic partners.

Support at the regional level was expressed by the Governor of Kalimantan Barat, Ria Norsan. He expressed optimism that the integrated alumina–aluminum downstream project in Mempawah and Landak Regencies would boost regional economic growth.

“This project will help improve the economy of West Kalimantan, particularly in Mempawah and Landak,” Norsan said.

He stressed the importance of attention to spatial planning, waste management, and post-mining reclamation.

“Our people should not merely become spectators, but should be able to become skilled workers, even managers within these companies,” he affirmed.

Through synergy between the central and regional governments, downstreaming is expected to serve as a foundation for strengthening the national industrial structure and gradually reducing import dependence.

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