Jakarta The government continues to promote the downstreaming strategy as a key pillar in national economic transformation. This policy has proven to be a driving force for regional economic growth by increasing the added value of commodities, creating jobs, and strengthening regional competitiveness.
Downstreaming encourages the formation of a region-based industrial ecosystem that supports local manufacturing activities. The central and regional governments continue to integrate development planning with the provision of supporting infrastructure such as integrated industrial areas, production roads, logistics ports, and energy facilities.
The Head of the Central Statistics Agency (BPS), Amalia Adininggar, stated that the industrial downstreaming program has proven capable of driving double-digit regional economic growth. Several provinces affected by the industrialization program have experienced a surge in economic growth within a short period.
“There are several provinces touched by industrialization, such as downstreaming, and their economies have achieved double-digit growth in a short time. In fact, provincial economies with strong and resilient industrial structures can contribute to the region’s economic resilience,” said Amalia.
In many regions, the benefits of downstreaming are beginning to be evident. According to Amalia, equitable reindustrialization across various regions is key to accelerating Indonesia’s overall economic growth.
He also assessed that the downstreaming policy aligns with President Prabowo Subianto’s government’s target of boosting national economic growth to 8%. Therefore, collaboration between the government, engineers, and industry players is crucial.
Meanwhile, Todotua Pasaribu, Deputy Minister of Investment and Downstreaming/BKPM, stated that the government has a target of achieving 8% economic growth.
“If in the previous 10 years of government, the investment realization figure was approximately IDR 9,900 trillion, then in the next five years, to reach this 8% figure, we need an investment realization figure of IDR 13,000 trillion,” Todotua explained.
In the long term, downstreaming is projected to create a structural transformation of the regional economy, from one based on raw resource extraction to an economy based on added value. This process will create stronger regional economic resilience against external shocks and expand the regional revenue base through taxes and levies from the industrial and service sectors.
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