Jakarta, INTI - The Indonesian government’s efforts to implement downstreaming in the mineral and coal sectors are expected to bring substantial positive impacts to the national economy. In his address to the MPR General Assembly, President Prabowo Subianto emphasized the importance of downstreaming as a strategy for processing commodities domestically to provide maximum added value. This policy has become a central pillar in strengthening a more resilient and competitive economy.
President Prabowo stated, "The added value from all commodities must strengthen our economy so that our people can achieve a prosperous life." Downstreaming is hoped to bring prosperity to all Indonesians while also creating a broader range of job opportunities in various regions.
Bahlil Lahadalia, Minister of Energy and Mineral Resources, further highlighted that downstreaming is an essential step that the government must take. During the REPNAS National Conference & Awarding Night in Jakarta, Bahlil mentioned that downstreaming has become a primary focus, not only as a source of state revenue but also as a key driver in overcoming dependency on raw material exports.
The Role of the Non-Mining Sector in Downstreaming Policies
Besides the mining sector, downstreaming has also been applied to non-mining sectors such as agriculture and fisheries. For example, palm oil downstreaming has opened tremendous potential by generating derivative products with higher economic value. Through efforts by the Ministry of Industry, various palm oil derivatives, such as oleochemicals and biofuels, have been developed. According to a report from the Ministry of Industry, palm oil downstreaming can yield up to four times the added value compared to raw products, leading to a significant increase in Indonesia's income.
Collaboration as a Key to National Downstreaming Success
Agus Cahyono Adi, Head of the Public Information and Cooperation Bureau of the Ministry of Energy and Mineral Resources, emphasized the importance of cooperation between state-owned enterprises and private companies, both domestically and internationally. "Downstreaming commodities is a strategic step to increase product added value and drive economic growth. This collaboration is expected to accelerate the downstreaming process and enhance the competitiveness of Indonesian products in global markets," Agus stated. According to him, only through solid partnerships can Indonesia achieve the expected economic independence and reduce reliance on imports.
The government hopes that with downstreaming, Indonesia will be better positioned to face global economic challenges and strengthen its bargaining power in international trade. Implementing downstreaming in renewable energy sectors, such as palm oil-derived products, is also expected to support sustainability and greenhouse gas reduction efforts, in line with Indonesia's commitment to combating climate change.
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