JAKARTA, The government continues to accelerate the downstream strategy as an effort to increase state revenue and strengthen national economic resilience amidst global turmoil. Nickel downstreaming is the main focus because it is considered capable of producing significant added value and paving the way for the development of an integrated and sustainable electric vehicle (EV) battery industry.
Since the ban on nickel ore exports was implemented in 2014, exports of processed nickel products have increased drastically from around US$ 1 billion to more than US$ 33.64 billion in 2024. This achievement has driven the growth of the processing industry, created thousands of jobs, and strengthened Indonesia’s position as the world’s largest exporter of processed nickel. The government is now moving to the next phase by building an integrated EV battery ecosystem, covering precursor production to electric vehicle assembly.
Deputy Chairman of the Mineral and Coal Downstream Committee of the Indonesian Chamber of Commerce and Industry (Kadin), Djoko Widayatno, assessed that downstreaming has produced strategic achievements for the national economy.
“Processed nickel exports rose from IDR 17 trillion in 2014 to IDR 510 trillion in 2023. This is an extraordinary achievement that is the foundation of the green economic transition,” said Djoko.
Djoko emphasized the importance of encouraging downstreaming towards the development of end products such as EV batteries.
“The added value of mixed hydroxide precipitate (MHP) can reach 120 times that of raw ore, and EV battery cells can reach 642 times. Therefore, first-class nickel should be focused on EV batteries, not just stainless steel,” he explained.
He also suggested strengthening environmental governance, local human resource training, and technology transfer to make the industry truly inclusive and sustainable.
At the Jakarta Geopolitical Forum IX/2025, Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia highlighted global uncertainty that encourages countries to be more protective of national interests. According to him, downstreaming is the answer to geopolitical dynamics and the need for energy transformation from fossil to renewable energy.
“The government has formulated a downstream roadmap in all commodity sectors. We have formed the Ministry of Investment and Downstream, the Downstream Task Force, and Danantara as a source of national financing,” Bahlil said.
He added that downstreaming is not only about economic value, but also geopolitical strategy and national energy security.
Meanwhile, Secretary of Economic Policy of Golkar Party DPP, Abdul Rahman Farisi, welcomed the downstreaming policy which is considered to bring economic justice to the regions. He encouraged local governments to actively empower local business actors and use Revenue Sharing Funds (DBH) for workforce training and strengthening MSMEs.
“President Prabowo and Minister Bahlil show a new direction of downstreaming as a regional development strategy. This is an opportunity to make villages the center of new economic growth,” said Abdul.
He is optimistic that the direction of national development is now supported by two main engines: downstreaming of natural resources in rural areas and modern industry in urban areas.
“Indonesia can fly with two engines at once towards the people’s welfare, in line with the Asta Cita vision of the Prabowo-Gibran government,” he said.
With strong commitment from the central and regional governments, as well as cross-sector support, downstreaming is now not just a policy jargon, but a real path towards an inclusive, equitable, and sustainable national economic transformation. (*/rls)
