The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has inaugurated the groundbreaking ceremony for the tin downstreaming project in Batam City. The project, involving an investment of IDR 1.2 trillion, aims to strengthen the national tin processing industry.

The Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, stated that the tin processing facility is owned by PT Batam Timah Sinergi (BTS), while the tin solder facility is owned by PT Tri Charislink Indoasia (TCI). In his statement in Jakarta on Saturday, he emphasized the government's commitment to supporting the acceleration of licensing, investment realization, and the development of local human resources.

"We encourage BTS and TCI to attract more investors as off-takers for their products, so that a sustainable tin industry ecosystem can be created," said Todotua. He stated that this inauguration marks an important milestone in the transformation of the national tin industry, as the facility is expected to become one of the largest in the world.

Todotua explained that PT Cipta Persada Mulia, the parent company of BTS and TCI, plays a strategic role in the national tin ecosystem. The company’s activities include tin ore mining through Mining Business Permits (IUP), all the way to tin ingot production at its own smelter. The tin ingot products are then further processed by BTS into tin chemicals and by TCI into tin solder and tin heat stabilizers.

In addition to supporting downstreaming, this project also contributes to the even distribution of industrial development outside of Java Island. Batam was chosen due to its strategic location near international trade routes and its adequate logistics infrastructure, which offers an advantage in export-import efficiency for components.

"Indonesia, as the country with the second-largest tin reserves in the world, must optimize this resource to increase its added value. Downstreaming of tin commodities in Indonesia is necessary to absorb domestic tin ingot production and develop the downstream industry with high global market potential," Todotua added.

Downstreaming for Economic Growth

The Minister of Investment and Head of BKPM, Rosan Roeslani, stated that downstreaming policies are key to achieving economic growth of up to 8 percent.

"Investment in the downstream sector has contributed 22-23 percent of the total investment in Indonesia over the past two to three years. This shows the significant impact of downstreaming on the economy," he said in a statement in Jakarta last Friday.

Rosan cited the example of nickel exports, which in 2017 were valued at only 3.3 billion US dollars. However, the value of exports from processed downstream nickel products increased to 30.4 billion US dollars. In addition to boosting export value, downstreaming also creates quality job opportunities for the Indonesian people.

Demographic Bonus and National Transformation

The Deputy Minister of National Development Planning/Deputy Head of Bappenas, Febrian Alphyanto Ruddyard, highlighted the importance of leveraging the demographic bonus, which will peak in 2025. The government has prepared a national transformation strategy based on three pillars: social, economic, and governance.

Social transformation includes improving human resource quality through education based on Science, Technology, Engineering, Arts, and Mathematics (STEAM), as well as strengthening vocational education. Meanwhile, economic transformation is focused on creating new sectors, such as green industries and the digital economy. Governance transformation aims to create a conducive investment climate through simplified regulations, including the implementation of the Omnibus Law.

The government has also outlined eight priority strategies to support the National Medium-Term Development Plan (RPJMN) for 2025–2029. These strategies include increasing agricultural sector productivity, developing Special Economic Zones (KEK), and accelerating investments in renewable energy and digital transformation.