Jakarta – National downstreaming projects are increasingly viewed as strengthening the growth of the industrial ecosystem, regional economies, and Indonesia’s global competitiveness. The enhancement of downstream activities in the mineral and mining sectors is considered a key foundation for building a sustainable economic structure based on value creation.
Executive Director of Indonesia Mining and Energy Watch (IMEW), Ferdy Hasiman, said that the involvement of the state-owned mining holding company MIND ID in downstreaming projects represents an important milestone in the development of green industry and clean energy in Indonesia. According to him, control over downstreaming projects not only increases the added value of natural resources, but also drives local economic growth.
“MIND ID has all the prerequisites to compete. By entering downstreaming projects, the company has taken a significant step forward. Projects such as Antam’s smelter in East Halmahera and integrated bauxite facilities further reinforce MIND ID’s position as a pioneer of the government’s downstreaming agenda,” Ferdy said.
He noted that the presence of the state-owned mining holding company has helped eliminate sectoral ego and strengthen synergy among group members, including collaboration with the private sector and support for electricity supply from PT PLN (Persero). From a sustainability perspective, Ferdy also highlighted the implementation of good governance and green practices by several companies, although illegal mining remains a serious challenge.
“Illegal mining permits create a negative stigma for the mining industry and disrupt companies that have already implemented ESG properly,” he stressed.
Meanwhile, Chair of Strategic Minerals, Critical Minerals, and Mineral Downstreaming Studies at the Indonesian Mining Professionals Association (Perhapi), M. Toha, said that global demand for metals such as nickel will continue to increase. Indonesia is seen as having a major opportunity to take on a strategic role if downstreaming is completed through to the final product stage.
“Economic growth is expected to be realized if downstreaming is completed up to the final product. As downstream industries grow, the multiplier effect will continue to expand,” M. Toha said.
A similar view was expressed by Deputy Minister of Investment and Downstreaming Todotua Pasaribu. According to him, downstreaming in the mineral sector essentially means building an integrated industrial ecosystem.
“Increasing the added value of mining into products needed by the manufacturing industry will contribute significantly to national economic growth,” he said.
Todotua emphasized the importance of fast licensing services, a conducive investment climate, and strong stakeholder synergy so that the benefits of downstreaming can be widely felt. He also stressed that downstreaming is not only about economics, but is part of efforts to strengthen Indonesia’s position in low-carbon supply chains and to build a sustainable economic foundation for the future.