Indonesia continues its downstream program even though the European Union filed a lawsuit at the WTO. The Ministry of Investment or the Investment Coordinating Board (BKPM) even reveals that he has prepared a strategic downstream roadmap for 2023-2035.
The Downstream Strategic Investment Roadmap is a follow-up to President Joko Widodo’s (Jokowi) directives to encourage economic transformation through the downstream and industrialization of natural resources in Indonesia.
The Ministry of Investment/BKPM also through its newest nomenclature formed a Deputy for Strategic Investment Downstreaming to support the realization of downstream quality investment in Indonesia.
Downstream and industrializing natural resources is one of the five big agendas of the Indonesian government.
Following Jokowi’s direction, the Ministry of Investment/BKPM is encouraged to be able to create quality national economic growth through downstream and industrialization.
Furthermore, the Minister of Investment/Head of BKPM Bahlil Lahadalia, revealed, through the downstream target it is expected that the state will be able to pocket an investment of US$ 545.3 billion or the equivalent of Rp. 8,276 trillion (exchange rate of Rp. 15,177 per US$) from 8 priority sectors.
Bahlil explained, in the downstream roadmap there are 8 priority sectors divided into 21 commodities. Some of these commodities include; minerals and coal; oil and gas; plantation, maritime, and forestry.
“We were able to reach a total investment of US$ 545.3 billion. This is not a small number, a fantastic number,” Bahlil explained on the sidelines of his meeting in Davos, Switzerland which was broadcast on the BKPM Youtube channel, Tuesday night (17/1/ 2022).
Downstream investments from minerals and coal are expected to reach US$ 427.1 billion. Then in oil and gas commodities amounting to US$ 67.6 billion. As well as downstream plantation, marine, and forestry, the investment can reach US$ 50.6 billion.
Furthermore, Bahlil said Indonesia did not want to focus on downstream just one commodity. Because of just one commodity, the state managed to get a big profit or profit.
This experience was proven when Indonesia carried out downstream nickel which had been running since 2021. Bahlil said that downstream nickel had succeeded in bringing Indonesia huge profits.
From his records, said Bahlil, in 2017-2018 nickel exports only reached US$ 3.3 billion. However, after downstream nickel in 2021, Indonesia’s export value has soared many times.