Jakarta — The government emphasizes that the mineral downstreaming policy not only focuses on increasing national added value but also must provide tangible benefits for local communities, including local MSME (Micro, Small, and Medium Enterprises) actors.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that economic justice is a primary principle in the industrialization process of natural resources.
“Future downstreaming must be fair for regions, regional MSMEs, and local communities. The added value must be enjoyed mostly by local communities. They must be masters in their own land,” Bahlil said.
According to him, the equitable distribution of economic benefits is a tangible form of the fifth principle of Pancasila, social justice for all Indonesian people. He highlighted the success of downstreaming in North Maluku and Central Sulawesi, which boosted regional economic growth by up to 20 percent, far above the national average of around 6 percent.
“This is our strategy to transform the economy from the service sector to industry. If we maintain consistency, God willing, by 2045, we can enter the ranks of the world’s top 10 economies,” he stated.
However, Bahlil also reminded of the importance of long-term planning so that regions do not decline after mining activities end. “Don’t let the region die after the mining is finished. Companies must enter other leading sectors such as plantations and fisheries,” he explained.
Meanwhile, the Head of the ESDM Division of PP AMPG, Kevin Hartman Putella, views downstreaming not merely as an economic policy but as a strategy towards national sovereignty and equitable development.
“This downstreaming is not just about banning raw material exports. It’s about how Indonesia manages its own natural resources for the prosperity of its people,” he said.
Kevin revealed that more than 30 smelters are already operating in Indonesia, creating hundreds of thousands of jobs, especially in regions like Sulawesi, Kalimantan, and Maluku. “The direction is right. We are ready to oversee this policy to open wider economic opportunities for the people,” he concluded.
