Jakarta – The government has emphasized that the industrial downstreaming policy is a strategic and non-negotiable step in an effort to strengthen national economic resilience. Downstreaming is considered the key to increasing the added value of natural resources, creating jobs, and accelerating Indonesia’s economic transformation from a commodity-based country to an advanced industrial country.
Governor of the National Resilience Institute (Lemhannas) Ace Hasan Syadzily said that the downstreaming policy in the Astacita mission is a real example of how Indonesia can change the extractive economic structure into an economy with added value.
Ace gave the example of the ban on raw nickel exports, for example, which has encouraged investment in the battery and electric vehicle industries, which are now part of the global competitive map.
“This step is not just an economic strategy, but a geopolitical statement that Indonesia must stand tall and be sovereign over the strategic resources it has,” said Ace.
Ace said that Indonesia is endowed with extraordinary natural wealth potential, especially in the form of strategic minerals, ranging from nickel, bauxite, copper, to renewable energy potential such as geothermal, water, and solar. Therefore, these strategic natural resources must be managed sovereignly and fairly for the progress of the nation.
In the Astacita mission of Indonesian President Prabowo Subianto and Vice President Gibran Rakabuming Raka, the fifth point is that the Government is committed to continuing downstreaming and industrialization to increase added value domestically.
Maximizing the potential of natural resources for the advancement of the national economy and the people is the focus of Prabowo-Gibran. Downstreaming and industrialization are the main instruments in realizing this target.
Through downstreaming and industrialization, the Government believes that Indonesia can convert basic commodities into highly competitive products. Not only that, this method can also create more quality jobs and encourage domestic economic growth.
On that basis, Ace said that Lemhannas is committed to continuing to encourage and provide various strategic recommendations for Indonesia’s efforts to build national energy independence and resilience.
“Lemhannas plays a role as a laboratory of ideas in strengthening national energy resilience, a meeting place for critical thinking, empirical evidence, and strategic vision to strengthen energy resilience in the midst of a world full of uncertainty,” said Ace.
Several sectors have become downstream priorities, such as nickel, bauxite, copper, and palm oil. The government encourages the development of integrated industrial areas close to sources of raw materials, and provides various incentives for investors involved in downstream projects. In addition, strengthening regulations and supporting infrastructure continues to be carried out to ensure that the downstream process runs optimally.
This step is also in line with the grand vision of Indonesia Emas 2045, where downstreaming is projected to be the main driver of increasing national economic competitiveness and independence. Not only the mining sector, the government has also begun to expand downstreaming to the agriculture, fisheries, and new renewable energy sectors, to ensure inclusive and sustainable economic development.
The support of the community and business actors is needed to make this policy a success. The government also emphasized that it will continue to oversee and strengthen the downstream policy in order to realize a strong national economic resilience amidst increasingly complex global dynamics.
