The Ministry of Investment released a roadmap for downstream strategic investment. BKPM Chief Secretary Ikmal Lukman said the roadmap was a follow-up to President Joko Widodo aka Jokowi's request to encourage economic transformation through downstreaming and industrialization of natural resources in Indonesia.

"Downstreaming and industrialization of natural resources is one of the five major agendas of the Indonesian government. In accordance with the president's direction, we are encouraged to be able to create quality national economic growth through downstreaming and industrialization," he said in a written statement on Thursday, December 29, 2022.

The preparation of the downstream roadmap has begun since June 2022. Ikmal said that his ministry has formed the Strategic Investment Downstreaming Decree to encourage the realization of downstream investment in Indonesia.

Through downstreaming, he said, wider employment will open up. Exports will also increase and in the end are expected to boost national economic growth.

The downstream roadmap includes eight sectors consisting of 21 selected commodities. The eight downstream sectors are oil and gas, minerals, coal, plantations, forestry, fisheries, and marine.

Ikmal said the study contained in the roadmap covers seven aspects, including policy, upstream, industry, world supply chain, regional infrastructure, risk analysis, and policy recommendations. "We make this downstream direction scoring (assessment), so there is a formulation to find out which downstream is the best," he said.

He hopes that the roadmap for downstream strategic investment will be able to provide the right projection in the future. The Ministry of Investment noted that there has been a significant increase in the trend of investment realization since the implementation of downstream in Indonesia. Ikmal said the industrial value of basic metals, metal goods, non-machinery and equipment increased by 90.7 percent from Rp 61.6 trillion to Rp 117.5 trillion.

Image source: TEMPO/Tony Hartawan

Source: https://bisnis.tempo.co/read/1673835/kementerian-investasi-rilis-peta-jalan-industri-hilirisasi