Jakarta – The government continues to encourage downstreaming policies to improve economic equality in disadvantaged areas. The Minister of Villages and Development of Disadvantaged Regions (Mendes PDT), Yandri Susanto, emphasized that village downstreaming is not only focused on the mining sector, but also includes the potential of other local commodities that can be processed to produce high added value.
“Village downstreaming is not only about mining,” he explained.
“In Blitar, for example, goat skin can be processed into drums that are exported at high prices. This is an example of downstreaming that can be applied in many other villages,” Yandri added.
He emphasized the importance of each village having superior products that can be processed to have export value.
“Imagine if raw materials were just sold like that, they would be cheap. But if they are processed into quality goods, they can be exported with high selling value,” he said.
This is part of Mendes PDT’s efforts to optimize local strengths and encourage village economic independence. He has also asked his staff to map villages with high downstreaming potential, including in the agriculture and plantation sectors.
“I want to create a village version of downstreaming that suits the characteristics of its people,” added Yandri.
Meanwhile, the Minister of Investment and Downstreaming, Rosan Roeslani emphasized that his ministry will conduct a comprehensive assessment of sectors that have the potential for downstreaming.
“We will assess potential sectors such as fisheries, plantations, and mining to encourage their added value,” said Rosan.
This step is expected to drive quality investment in areas that have so far received minimal attention, especially Eastern Indonesia.
“The focus on Eastern Indonesia aims for them to also receive special attention to attract sustainable investment,” he explained, emphasizing the importance of equitable distribution of investment.
On the other hand, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, also stated that downstreaming is the main driver for national economic growth.
“Downstreaming is the engine of our economic growth,” he said. Bahlil emphasized that the downstream policy not only increases product value but also creates jobs and improves community welfare, especially in less developed areas.
For example, he highlighted the downstreaming of palm oil which has produced derivative products such as biodiesel and biomaterials, which also support the national economy.
