JAKARTA — The government under the leadership of President Prabowo Subianto and Vice President Gibran Rakabuming Raka emphasized that downstreaming is now a new engine for driving national economic growth and investment.
This strategy has proven effective in creating various added values, strengthening industrial structures, and attracting massive domestic and foreign investment.
Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, stated that downstreaming is no longer just a policy concept but has become an official nomenclature within the ministry’s structure.
“Previously, downstreaming was just a context, but now it has become a nomenclature within the ministry. Therefore, our ministry is now called the Ministry of Investment and Downstreaming, which also carries out the functions of the Investment Coordinating Board,” he said some time ago.
According to Todotua, downstreaming has a significant impact on economic growth. The government is targeting economic growth of 8% in the next five years, with investment contributing up to 30% of total national growth.
“During the last two government terms, investment realization reached IDR 9,200 trillion. To achieve the 8 percent growth target, we are tasked with realizing IDR 13,000 trillion in investment over the next five years,” he explained.
Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that downstreaming is the main path for Indonesia to escape the natural resource curse.
He reminded that no developed country has succeeded without industrialization and downstreaming.
“This country will never progress without industrialization and downstreaming. Otherwise, we will simply be a country with a natural resource curse,” he asserted.
Bahlil cited the successful nickel downstreaming as an example, which has increased export value from US$3.3 billion in 2017 to US$34 billion in 2024.
However, he acknowledged that implementation still needs improvement to be more planned and equitable.
Senior economic observer Aviliani believes that downstreaming has had a positive impact on investment, but she cautions against the importance of balancing the economy, labor, and the environment.
“When we talk about natural resources, they are capital-intensive. Therefore, we must also consider their impact on employment and achieving the net-zero emissions target,” she explained.
Through increasingly structured policy direction and cross-sector support, downstreaming is now a key foundation for realizing inclusive, sustainable, and highly competitive economic growth.
