Indonesia possesses significant natural resources that can be optimized to become a global key player in commodity-based downstream industries. The projected investment value in Indonesia's downstream roadmap is estimated to reach USD 545.3 billion or approximately IDR 8.549 trillion (at an exchange rate of IDR 15,679 per USD). Notably, non-oil and gas state revenue (PNBP SDA) realized in 2022 reached IDR 120.1 trillion, marking a growth of 127.2% from the 2021 revenue of IDR 52.9 trillion. The government encourages the use of technology for the downstreaming of mineral and metal-based commodities such as bauxite, tin, copper, and nickel. The projected investment value in Indonesia's downstream roadmap is USD 545.3 billion, revealed the Coordinating Minister for Economic Affairs.
As we approach the end of 2023, Indonesia's national economic fundamentals continue to strengthen, with the GDP for the second quarter of 2023 reaching 5.17%. This robust growth is supported, in part, by the manufacturing industry sector, which grew by 4.88% (YoY) and contributed 18.25% to the GDP. One of the government's policies related to downstreaming is the ban on nickel ore exports in 2020. This policy has successfully boosted the export of downstream nickel commodities, reaching USD 14.53 billion in 2022. With this achievement, the trade balance of upstream, intermediary, and downstream nickel products in 2022 also experienced a surplus, reaching USD 13.76 billion. Furthermore, it was explained that the policy of nickel downstreaming has also managed to foster the stainless steel industry ecosystem, increasing the potential value-added from nickel ore to ferronickel and stainless steel billets by 14 to 19 times. Additionally, the results of this nickel downstreaming serve as raw materials in the production of Electric Vehicle (EV) batteries, with domestic added value reaching 470 to 780 times. To date, several investments have been made, such as the Indonesia Battery Company consortium with Hyundai and LG, totaling around USD 9.8 billion, covering the production of electric batteries from upstream to downstream. Moreover, this surplus condition is not limited to nickel commodities alone but extends to various other commodities. In 2022, the trade balance of bauxite commodities achieved a surplus of USD 622 million, and alumina commodities also recorded a surplus of up to USD 600 million.
