Jokowi Announces Indonesia’s Roadmap for Downstream Program Until 2040

Downstream Mining Indonesia Receives Up to US$ 33 Billion

The Indonesian government has reportedly created a roadmap for its downstream program until 2040. The roadmap covers 21 commodities, including mining commodities. President Jokowi revealed this during his speech at the opening ceremony of the Hannover Messe 2023 in Hannover, Germany on Sunday, April 16, 2023.

President Jokowi mentioned that Indonesia is very open to investment and cooperation, particularly in the downstream program of the industrial and green economy. “Indonesia is not closing its doors, on the contrary, we are very open to investment and cooperation in building downstream industries in Indonesia,” said President Jokowi.

In building such industries, the President believes that Indonesia has a tremendous opportunity, as seen from the projected investment value of US$ 545.3 billion in the Indonesian downstreaming roadmap, or around Rp 8,120 trillion (at a rate of Rp 14,900 per US$). “Until 2040, there are 21 commodities in the downstreaming roadmap that are projected to reach an investment value of US$ 545.3 billion. This is a tremendous opportunity that is mutually beneficial,” said President Jokowi.

Furthermore, President Jokowi also emphasized Indonesia’s commitment to maintaining environmental sustainability, as evidenced by several concrete actions that have been taken to improve the environment and implement energy transitions. “Deforestation rates have significantly decreased and are the lowest in the past 20 years, forest fires have decreased by 88%, 600,000 hectares of mangrove forests will be rehabilitated and completed in 2024, the largest in the world, and 30,000 hectares of green industrial areas have been built,” he said.

President Jokowi also stated that Indonesia aims to generate 23% of its energy from new and renewable sources (EBT) by 2025 and plans to close all coal-fired power plants by 2050. “Indonesia also wants to ensure that the energy transition produces affordable energy for our people,” he added.

Indonesia is a country that is rich in natural resources, including minerals and coal. The government’s downstreaming program aims to add value to these resources by processing them into finished goods or semi-finished goods domestically, rather than exporting raw materials. The program is part of Indonesia’s broader economic development strategy to become a high-income country by 2045.