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RI may lack industries to absorb downstream output, MIND ID says
The government’s downstreaming agenda must be supported by industrialization, but the pace of industrialization in Southeast Asia’s largest economy is decreasing, especially in sectors utilizing processed goods from the mining industry.
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Supplying raw material: PT Freeport Indonesia's Manyar copper smelter and refinery in Gresik, East Java, is pictured on February 29, 2024. (JP/Divya Karyza)
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tate-owned mining holding company MIND ID president director Hendi Prio Santoso raised concern that the country was lacking sufficient domestic industry to absorb output from downstreaming facilities, including the output produced by the state-run miners.
“We are worried the domestic manufacturing industry would not be able to utilize the raw materials we produce,” he said in an event broadcast live by CNBC Indonesia on Thursday.
“We support manufacturers that are making finished products and we are ready to supply raw materials for manufacturing industries that will be established in Indonesia.”
He went on to say that the government’s downstreaming agenda must be supported by industrialization. However, he noted that the pace of industrialization in Southeast Asia’s largest economy is decreasing, especially in sectors utilizing processed goods from the mining industry.
“We believe that downstreaming cannot run alone, but must be done with industrialization. But, unfortunately, I heard that industrialization in Indonesia is declining, especially in sectors that can utilize raw materials from the mining [industry],” he said.
Read also: RI lacks investment to continue downstream: Ministry
Hendi added that MIND ID members, comprised of Antam, Bukit Asam, Freeport Indonesia, Inalum, Timah and Vale Indonesia, have carried out downstream industry development.
