Indonesia intensifies natural resource downstreaming to boost global value chain position

The Indonesian government is intensifying its natural resource downstreaming program to increase value-added production and strengthen the nation's position in the global value chain. Vice Minister of Investment and Downstreaming Todotua Pasaribu stated that the government is preparing three investment strategies: planning, execution, and licensing/incentive policies.

A roadmap is being developed for 28 strategic commodities through 2045, with a potential investment value of US$618 billion. To increase focus, the government plans to narrow this to 15 key commodities within the National Medium-Term Development Plan (RPJM). The program aims to optimize oil and gas, minerals, marine, and plantation sectors to drive economic equality.

In the mineral sector, copper has emerged as a critical resource for electricity, electronics, and the electric vehicle transition. Efforts to secure the supply chain include MIND ID's majority ownership in PT Freeport Indonesia (PTFI). PTFI is expanding its value chain through the Precious Metal Refinery in Gresik, East Java, which processes anode slime into gold and silver. This facility has an annual capacity of approximately 50 tons of gold and 200 tons of silver.