Jakarta – The government has reaffirmed its commitment to increasing the added value of natural resources through a downstreaming policy driven by strategic incentives. This measure is believed to accelerate national industrial growth while strengthening the competitiveness of domestic products.
The incentives offered include fiscal support ranging from tax holidays to import duty exemptions for capital goods. These policies are expected to attract more investment and create new, sustainable job opportunities.
Deputy Minister of Investment and Downstream Development/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, stated that the total incentives provided from October 2024 to October 2025 reached approximately IDR 1,300 trillion. This support aims to strengthen business competitiveness globally.
“This demonstrates the government’s strong commitment to attracting quality investment. We’re not providing incentives without reason. These are all potential state revenues that we’re returning to serve strategic purposes,” he said.
Furthermore, Todotua emphasized that the downstreaming strategy cannot rely solely on incentives. Without local research and innovation, Indonesia will continue to rely on imported technology.
He also cited the nickel project in Morowali, which already has over 50 smelters. However, not much of the research work of Indonesians has been utilized there. He argued that the business world must be part of the national research ecosystem.
He also stated that starting in 2026, the Ministry of Investment and Downstream Development/BKPM is targeting companies, particularly those receiving investment incentives, to take a greater role in supporting research and developing Indonesian talent. This research could include research in downstream technology, smelter technology, and the use of artificial intelligence.
“Starting next year, companies already enjoying incentives must also contribute to strengthening the academic world. We’re encouraging scholarship programs and joint research,” he explained.
The government’s policy of providing incentives worth approximately Rp 1,300 trillion to strengthen the downstreaming process has shown the right direction. However, the success of national downstreaming will also be determined by the output achieved from these incentives, which foster synergy between the research ecosystem, industry, and universities.***