The Indonesian economy in the eastern region is considered to have resilience during the Covid-19 pandemic. Economic resilience in the region is supported by the potential for natural resources and the increase in added value from the mining industry. "The economy in the eastern region is able to survive, supported by value-added export performance," wrote Bank Indonesia in the 2020 Indonesian Economic Report Book which was launched on Wednesday (27/1).
Eastern Indonesia has natural resource potential which is rich in mining products, such as nickel and copper. In recent years, this area has been able to increase the added value of its mining commodities into value-added manufactured goods. For example, nickel has been successfully processed into basic metal industrial products, especially steel. In addition, increasing the added value of exports is also carried out by means of foreign investment which is part of the global value chain.
The structural reforms undertaken have helped export commodities from the region remain competitive. This is in accordance with the needs of the investing country. The linkage of export commodities with global production chains and investment strategies also causes export results to ensure demand from investors' countries of origin. So that it has an impact on the sustainability of investment in the long term.
