Jakarta—The government targets investment in the downstream energy and mineral resources sector to reach USD 618 billion in the next few years, according to an official statement from the Ministry of Energy and Mineral Resources (MEMR) on Monday, 24 February. Downstreaming is expected to be the primary driver of increasing the added value of natural resources and contribute significantly to the national economy.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung revealed that the government pays great attention to the downstream programme, especially in the mineral and coal sector, which accounts for a large portion of the investment target.
“We are targeting an investment of USD 618 billion with a significant economic impact on Gross Domestic Product (GDP) and exports,” said Yuliot at a working meeting with Committee II DPD RI.
Furthermore, Yuliot explained that the downstream programme is projected to contribute to a GDP of USD 235.9 billion and increase export value to USD 857.9 billion. Of the total investment target, around 80% will come from the mineral and coal sector, while the oil and gas sector will contribute the other 10%. The rest will come from other sectors, such as plantations, marine, fisheries, and forestry.
“With this downstream programme, we want to ensure that our natural resources can provide maximum added value domestically, especially in producing regions,” he added.
President Prabowo Subianto also affirmed the government’s commitment to continue downstreaming. In his speech at Gerindra Party’s 17th-anniversary commemoration at Sentul International Convention Center (SICC), Bogor, on Saturday, 15 February, Prabowo ensured that the downstream programme started by the previous administration would be continued and improved.
“We will continue to run downstream. This year, we started with 15 mega projects worth billions of dollars. And we are doing this without relying on foreign investment,” Prabowo said.
The President also emphasised that Indonesia remains open to foreign investment, but the government will prioritise national economic independence.
“If anyone wants to invest in Indonesia, we are open. However, we will not beg. We will rise with our strength,” he said. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
