During a statement made at his office in Jakarta on Friday, he highlighted that this call aligns with Presidential Decree No. 1 of 2025 on the establishment of the Task Force for the Acceleration of Downstreaming and National Energy Security.
Lahadalia, appointed as chair of the newly created task force, stressed that this directive applies to both state-run and private financial institutions operating in the country.
"If they want to continue operating here, they should comply with the prevailing rules of the Republic of Indonesia," he stressed.
The minister elaborated that support from financial institutions is crucial for Indonesia to reduce its dependence on the state budget (APBN) for financing investment projects, particularly those associated with the downstreaming of natural resources.
Lahadalia highlighted that this approach aims to enable the government to mobilize the APBN for other initiatives, such as the Free Nutritious Meals program, health programs, and infrastructure development.
When inquired about the possibility of the government pushing for lower interest rates for downstreaming projects, Lahadalia indicated that such a move was improbable, citing that the internal rate of return (IRR) for such projects has been quite attractive to investors.
"I believe that we do not need to intervene by lowering interest rates, as the average IRR is between 11 and 12 percent," he stated.
President Prabowo Subianto has officially established the Task Force of the Acceleration of Downstreaming and National Energy Security, which comprises several ministers, the attorney general, and the chief of the National Police.
According to Presidential Decree No. 1 of 2025, cited on the State Secretariat Ministry's website, the task force is mandated to fast-track downstream efforts across various sectors while bolstering Indonesia's energy security.
The decree, signed by the president on January 3, stipulates that the government prioritize the downstreaming of minerals, coal, oil, natural gas, agricultural yields, forestry products, and fishery commodities to boost their value.
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Translator: Putu Indah, Tegar Nurfitra
Editor: Rahmad Nasution
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