Downstream processing must be fair to the regions, local micro, small, and medium enterprises (MSMEs), and local communities,Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasized that regions must receive the greatest economic benefits from mining and downstream processing activities.
In a statement here on Sunday, he said the government continues to encourage collaboration among investors, central and regional governments, entrepreneurs, and local communities to achieve social justice for all Indonesians.
The Indonesian government is accelerating downstreaming across key sectors, such as minerals, coal, oil and gas, palm oil, fisheries, and agriculture, as part of its strategy to become a high-income country.
Up to the third quarter of 2025, Indonesia's downstreaming program has attracted a total investment realization of Rp1,245.8 trillion since 2020. The largest contribution in Q3 2025 amounting to Rp150.6 trillion, dominated by the mineral sector, especially nickel.
“Downstream processing must be fair to the regions, local micro, small, and medium enterprises (MSMEs), and local communities," he said.
The minister stressed that economic benefits should not be concentrated in Jakarta or taken entirely by investors.
"This is an implementation of the fifth principle of Pancasila (social justice for all Indonesians),” he added.
He cited successful downstreaming in North Maluku and Central Sulawesi Provinces, which have boosted regional economic growth to 20 percent, while national economic growth stands at around 6 percent.
According to him, the successful program in the two provinces demonstrates that downstream processing can be a driving force for regional economic transformation.
"This is a strategy to transform our economy from construction services to industry. If done consistently, God willing, we will achieve our target of being among the top 10 countries by GDP in 2045,” he explained.
He also noted that the government is developing a roadmap for post-mining downstream industries, including new industrial projects after mining activities conclude, to ensure regional economic sustainability.
The Ministry also ensures that downstream policies are implemented with the principles of equitable benefits and local community empowerment.
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Translator: Kelik, Kenzu
Editor: M Razi Rahman
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