Investment Minister Bahlil Lahadalia emphasizes that achieving Indonesia's investment target of Rp1,650 trillion (approximately USD 105.67 billion) by 2024 hinges on a downstreaming strategy, especially in sectors embracing sustainability principles. This policy aligns with the government's commitment to fostering economic growth surpassing five percent, with a primary focus on downstreaming within the investment context. Despite global uncertainties impacting investment decisions, Indonesia possesses strategic factors, such as political, legal, and economic stability, progressive policies enhancing the investment climate, a skilled labor force, and abundant natural resources suitable for downstreaming. In the context of geopolitical dynamics causing recessions worldwide, Lahadalia advocates for sustainable investments that promote inclusive, fair, and equitable development. The government is directing efforts towards environmentally friendly industries utilizing renewable energy sources to achieve these goals.
Strategic management of Indonesia's vast natural resources through downstreaming and industrialization is crucial, aiming to maximize added value for national interests. This includes increasing exports, foreign exchange earnings, state income, and overall economic growth. Downstreaming initiatives contribute to sustainable development goals, emphasizing the creation of decent jobs, climate change mitigation, and poverty and inequality reduction. Highlighting Indonesia's substantial CO2 storage potential, Lahadalia encourages investors to incorporate downstream processes using renewable energy. This aligns with efforts to reduce emissions through Carbon Capture, Utilization, and Storage (CCUS) technology, preventing CO2 emissions from being released into the atmosphere. Lahadalia emphasizes the Ministry's comprehensive approach, overseeing investments from upstream to downstream in priority sectors. The roadmap, covering 2023–2035, outlines a potential investment of USD 545.3 billion across 21 commodities in eight priority sectors: minerals, coal, oil, natural gas, plantations, fisheries, maritime, and forestry. Investment realization in the downstream industrial sector from January to September 2023 amounted to Rp266 trillion (approximately USD 17.03 billion), constituting 25.3 percent of the total investment realization at Rp1,053.1 trillion (around USD 67.43 billion). This underscores the significance of downstreaming in Indonesia's pursuit of sustainable and lucrative investments.
