The Prabowo-Gibran administration has committed to continuing the downstreaming of the mineral and coal sectors, with plans to expand implementation into other sectors.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that Indonesia will soon focus on optimizing downstream efforts beyond the nickel sector.

"One of our future responsibilities is to enhance downstreaming in other sectors, including bauxite," Bahlil said at the Ministry of ESDM on Monday (21/10).

In his inaugural address, President Prabowo Subianto emphasized the Indonesian government's commitment to advancing downstreaming across all commodities.

“To truly protect the most vulnerable and achieve genuine prosperity, we must implement downstreaming across all the commodities we possess,” Prabowo declared at the MPR/DPR RI building on Sunday (20/10).

Prabowo added that increasing the added value of all commodities should positively impact the economy for both the people and the nation.

Downstream Projects

In a separate statement, MIND ID CEO Hendi Prio Santoso noted that the downstreaming commitment has been a priority across the past two administrations.

“We now have processing facilities, including smelters, and are moving toward the midstream, producing raw materials for the industry,” Hendi said on Sunday (20/10).

Hendi highlighted that Indonesia’s mineral downstreaming could significantly accelerate industrial growth in the country.

He pointed to bauxite as an example, where exporting raw bauxite ore previously brought in around USD 20 per ton. With downstream processing to alumina and aluminum, this value could increase to USD 2,400 per ton.

The development of renewable energy and other industries is also projected to boost demand for processed mineral products.

In an official statement, MIND ID confirmed the continuation of several downstream projects. Completed projects include the PT Freeport Indonesia (PTFI) copper concentrate refinery in Manyar, Gresik, East Java, with an investment of approximately IDR 58 trillion.

This single-line copper smelter, one of the largest in the world, can refine 1.7 million tons of copper concentrate annually, producing around 650,000 tons of copper cathode, 50 tons of gold, and 210 tons of silver.

Additionally, the Smelter Grade Alumina Refinery (SGAR) Phase 1 in Mempawah, West Kalimantan, with an investment of around IDR 16 trillion, will process about 3.3 million tons of bauxite annually to produce 1 million tons of alumina for aluminum production.

MIND ID is committed to further investment in SGAR Phase 2, which will boost alumina production capacity and include a smelter to produce aluminum.

Next year, MIND ID Group has several major projects in the pipeline, including the expansion of aluminum smelters, increased capacity for tin chemicals and tin solder, and the development of primary tin Block #1 and Block #2.