Jakarta, INTI - The downstreaming of mineral and coal commodities has become a strategic agenda for the Indonesian government. After his inauguration as President of the Republic of Indonesia on October 20 at the Nusantara Building in Senayan, Jakarta, President Prabowo Subianto emphasized that this downstreaming policy would be applied to all of Indonesia’s commodities to increase their added value for the national economy. His address highlighted the government’s commitment to making downstreaming a significant pillar in achieving people’s welfare.
According to President Prabowo, downstreaming will bring substantial benefits to Indonesia by enhancing the value of each produced commodity. "Downstreaming will be implemented for all commodities we have. The added value from all these commodities must strengthen our economy so that our people can achieve a prosperous life," Prabowo said. This policy is also aimed at ensuring that every commodity produced can be enjoyed by all Indonesians.
Indonesia's Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, reinforced the President's statements, calling downstreaming the main engine of national economic growth and vital to creating new employment opportunities. Bahlil stated that downstreaming is not only about maximizing profit from natural resources but also about creating a sustainable industrial ecosystem that strengthens local economies.
Beyond minerals and coal, downstreaming is also expected to increase commodity value in agriculture, plantations, and fisheries. Processing commodities domestically will significantly raise the value of each product and open business opportunities for supporting industries.
Positive Impacts of Downstreaming and the Challenges Ahead
The downstreaming policy has spurred major changes, particularly in the palm oil sector. The Ministry of Industry reports that the palm oil downstreaming program has generated derivative products such as oleofood complexes, oleochemicals, and biofuel-based products like biodiesel, green diesel, and biomass. These products yield up to four times the added value compared to raw products, demonstrating downstreaming’s enormous potential to boost the national economy.
Agus Cahyono Adi, Head of the Public Information and Cooperation Bureau of the Ministry of Energy and Mineral Resources, stressed the importance of collaboration between state-owned enterprises (BUMN) and the private sector. "By implementing downstreaming across sectors, Indonesia can reduce its reliance on raw material exports and create a more sustainable industry," Agus explained. This step will bolster national economic resilience, reducing dependence on the fluctuations of global commodity prices.