If we can do it (downstreaming) well and we focus on it, it may become one of Indonesia's strategies to transform from a developing into a developed country…Jakarta (ANTARA) - The Indonesian government’s investment policy will remain focused on downstreaming the industries of 21 commodities to attract a total investment of US$545.3 billion by 2040, Investment Minister Bahlil Lahadalia has said.
He made the statement during a working meeting with Commission VI of the Indonesian House of Representatives (DPR RI) here on Monday.
His ministry has categorized the future investment needs of 8 priority sectors, namely minerals, coal, oil, natural gas, plantations, marine, fisheries, and forestry.
The 8 sectors cover 21 commodities: coal, nickel, tin, copper, bauxite, steel, gold, silver, asphalt, oil, natural gas, coconut, rubber, biofuel, logs, pine resin, shrimp, fish, crab, seaweed, and salt.
"If we can do it (downstreaming) well and we focus on it, it may become one of Indonesia's strategies to transform from a developing into a developed country as well as increase our per capita income from US$4.5 thousand to US$9–10 thousand," the minister said.
Under the priority downstreaming policies in 2023, Indonesia will ban the export of another raw good, namely bauxite, which will be followed by export bans on copper and tin.
Currently, a copper smelter by PT Freeport Indonesia in the Gresik Special Economic Zone (SEZ), East Java province, has reached 50 percent completion.
Thus, by the beginning of 2024, it is expected that Indonesia will halt the export of raw copper.
According to Lahadalia, the trend of investment realization increased in the period from 2019 to 2022, with even more investors choosing to invest in the downstreaming sector rather than the labor-intensive sector.
Investment realization in 2022 was recorded at Rp1,207 trillion, up 34 percent year-on-year and exceeded the government’s target of Rp1,200 trillion.
At least 54.2 percent of the figure came from foreign investment (PMA), while the rest was obtained from domestic investment (PMDN).
The minister further noted that 1,305,001 new jobs were created as a result of investment in 2022, surpassing the government’s target of 1.3 million new jobs.
Three top investors in Indonesia in 2022 were Singapore, with an investment of US$13,281 million; China with US$8,226 million; and Hong Kong with US$5,514 million.
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Translator: um Riswan, Uyu LimanKunt
Editor: Tia Mutiasari
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