The Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, revealed that out of the total investment realization of IDR 1,418 trillion that flowed into Indonesia in 2023, 26% was directed towards downstream sectors. Speaking at The Ritz-Carlton Jakarta Pacific Place on January 31, Bahlil emphasized the importance of reaching a target of 45% for investments in downstream sectors to bolster overall investment achievements. He stated that investing in downstream sectors is crucial for Indonesia to escape the middle-income trap, asserting that it contributes to the creation of quality job opportunities. Bahlil underscored the significance of continuity in downstream investments, regardless of who holds the position of the Minister of Investment in the future. He warned against regression if this strategic approach is not sustained. The Minister acknowledged that poverty remains a significant concern in regions associated with mining downstream activities. In addressing this issue, he emphasized the need for fairness in downstream investments. Bahlil stressed the importance of just and equitable collaboration among investors, the central government, local governments, local entrepreneurs, and the general populace.
To address poverty related to downstream activities, the Ministry of Investment has implemented regulations requiring every incoming investment to collaborate with local entrepreneurs and micro, small, and medium-sized enterprises (UMKM). Bahlil acknowledged the need for continuous improvement in the downstream investment process to ensure the prosperity of communities in these regions. The push for downstream investments is seen as a strategic move to propel Indonesia's economic development and create a balanced and inclusive growth pattern, providing benefits to various stakeholders involved in the investment ecosystem.
