Synergy between the Central and Regional Governments Supports Downstreaming to Accelerate Economic Growth
By: Rivka Mayangsari*)
The government’s efforts to accelerate national economic growth are increasingly showing a clear and structured direction, one of which is through the downstreaming policy. President Prabowo Subianto emphasized that downstreaming should not stop at the initial stage, but must be a strategic step towards broader and more sustainable industrialization.
In his statement, the President stated that downstreaming projects can make a significant contribution to reducing dependence on imports, encouraging increased exports, and strengthening the competitiveness of national industry. He also emphasized that each downstreaming project must be designed not only based on advanced technology but also prioritize the creation of extensive job opportunities through a labor-intensive sector approach. This way, the benefits of economic development can be felt equally by the community.
The President also emphasized the importance of developing import-substituting industries that rely on local resources so that Indonesia becomes not only a market for foreign products but also a leading producer with high competitiveness. He added that downstream investment must be spread throughout Indonesia, not just concentrated on Java, to truly achieve economic equality across the country.
One concrete example of this downstreaming policy is the construction of an Integrated Battery Factory in Tanjung Buli, East Halmahera. This project symbolizes the strong synergy between the central and regional governments. The Governor of North Maluku, Sherly Tjoanda Laos, stated that she greatly appreciates the strategic steps taken by the central government to encourage economic growth in eastern Indonesia.
Responding to the groundbreaking ceremony for the factory, Sherly stated that the development of an integrated electric vehicle battery industry in East Halmahera will be a significant catalyst for regional economic growth. She stated that the wise use of natural resources through downstreaming has the primary goal of improving community welfare. Sherly also stated that the indigenous communities in the region fully support the project, estimating that at least eleven tribes have expressed their readiness to support the government’s downstreaming program.
The Governor also stated that the project, initiated by Antam and its strategic partners, is a clear reflection of the state’s commitment to creating equitable development. He believes that through collaboration between the central government, regional governments, and strategic industry players, the project will improve the quality of life of the community and open up new economic opportunities in eastern Indonesia.
Meanwhile, the President Director of PT Aneka Tambang (Antam), Achmad Ardianto, explained that his company, as a strategic state-owned enterprise, is committed to supporting the community’s economic growth. He stated that Antam will continue to collaborate with the central and regional governments to ensure that the downstream project is carried out inclusively and has a real impact on the community.
According to Ardianto, the project being implemented in East Halmahera includes mining and the development of an integrated industrial area. This area will be equipped with facilities such as a battery raw material factory with a capacity of 30,000 tons of cathode per year, a pyrometallurgy facility to produce 88,000 tons of processed nickel alloy, and a battery recycling plant with circular technology with a capacity of 20,000 tons of metal per year.
He stated that the presence of this strategic project is not solely about the industrialization of electric vehicle (EV) battery metal, but also symbolizes the economic revival of eastern Indonesia. He estimates that this project could absorb up to 8,000 direct workers, accompanied by various training programs and gradual capacity building for local human resources.
Ardianto also stated that the success of downstreaming in North Maluku is highly dependent on adequate infrastructure support. He emphasized that ANTAM is committed to collaborating with the central and regional governments to ensure the project runs inclusively and has a real impact on the community. He believes that the development of this battery ecosystem is not simply an industrial project, but a crucial momentum in the transformation process of eastern Indonesia.
Through close collaboration between the central government, regional governments, and strategic state-owned enterprises, the downstreaming project in East Halmahera demonstrates a new direction in inclusive and equitable national development. Downstreaming is not only an economic strategy but also a tool for social transformation capable of improving community welfare and creating a modern, sustainable industrial ecosystem.
Yes, global competitiveness.
With a spirit of mutual cooperation and policies that promote equity, Indonesia demonstrates that economic growth must not only be high but also equitable. Downstreaming is proof that the nation’s natural resources can be independently processed, creating added value and paving the way to national economic sovereignty.
This step is also a crucial part of realizing the vision of Golden Indonesia 2045, where the nation’s economic strength no longer depends on raw material exports, but rather relies on high-value-added industries that are managed sustainably and based on social justice for all Indonesians.
*) Economic Observer
