he Ministry of Investment and Downstream Industry/BKPM (Investment Coordinating Board) has held an Expose of Strategic Investment Downstreaming Research, which takes the theme “Strategic Investment Downstreaming: Creating Added Value, Advanced Indonesia”.
Held in Jakarta on Dec. 23, the event was attended by 150 participants from related ministries and institutions, business associations, industries and academia, as well as the head of Investment and the One-Stop Integrated Service Office (DPMPTSP) and the head of the Regional Development Planning Agency (Bappeda).
Heldy Satrya Putera, secretary of the Ministry of Investment and Downstream Industry/main secretary of BKPM, said the 2024 Strategic Investment Downstreaming Research was followed up on the Ministry of Investment and Downstream Industry/BKPM’s Strategic Investment Downstreaming Road Map from 2022 and 2023.
In 2024, the Ministry of Investment and Downstream Industry/BKPM prepared three researches, consist of Study of Acceleration Downstreaming, Study of Optimization Downstreaming and Study of Impact Downstreaming.
The acceleration research captured the development of downstream investment for 28 commodities. One of these commodities was nickel, which has two main downstreaming targets: stainless steel products and electric vehicle batteries.
"From this research, we can see the development of downstreaming, for example nickel downstreaming and its related products. We have established a nickel downstreaming ecosystem, from the mines to the final product," said Heldy, who also serves as the acting deputy for strategic investment downstreaming of the Ministry of Investment and Downstream Industry/BKPM.
The second research, the Study of Optimization Downstreaming, explored seven commodities, namely bauxite, Buton asphalt, petroleum, natural gas, biofuel, skipjack tuna/mackerel tuna and seaweed.
"We also captured any [commodity-related] problems so that we can optimize them," he continued.
Previously, the Strategic Investment Downstream Road Map stated that the investment required in the downstream sector until 2040 were projected at US$618.1 billion, consisting of $498.4 billion from the mineral and coal sector, $68.3 billion from the oil and gas sector and $51.4 billion from the plantation, marine, fisheries and forestry sectors.
In addition, it is projected that there will be an increase of $857.9 billion in exports and an increase of $235.9 billion in GDP, while the absorption of labor will reach approximately 3 million workers.
Based on data from the Ministry of Investment and Downstream Industry/BKPM, the contribution of downstreaming to the investment realization for the January-September 2024 period reached Rp 272.91 trillion, equivalent to 21.6 percent of the total investment realization.
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