[REVISION HISTORY]

Indonesia industrial downstreaming strategy

Updated 16 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-14 23:12 UTC → 2026-10-16 01:35 UTC · added ~~removed~~

Indonesia continues to advance its national strategy to transform mining, plantation, and fisheries sectors into integrated industrial powerhouses. The government is focusing on processing natural resources into high-value products to bolster economic sovereignty and integrate into global supply chains, with a roadmap for 28 strategic commodities through 2045. In the mineral and coal subsector, the government is prioritizing production that supports regional economic growth. As of August 2026, non-tax state revenue (PNBP) from this sector reached Rp108.13 trillion. PT Freeport Indonesia (PTFI) has resumed operations at its Manyar smelter and PT Smelting, targeting a combined capacity of approximately 800,000 tons of copper cathodes per year. Furthermore, President Prabowo Subianto inaugurated 11 strategic downstreaming projects valued at US$ 10.2 billion, including the Indonesia Weda Bay Industrial Park (IWIP) to support nickel-based battery and electric vehicle supply chains. Legislative and ministerial efforts are also expanding downstreaming to agriculture and livestock to address chronic import dependence. While the poultry sector is expected to reach a surplus of 4.25 million tons in 2025, the dairy and beef sectors remain heavily reliant on imports. ~~Domestic fresh milk production meets only about 20-21 percent of national demand, and the beef supply faces an annual deficit of 300,000 to 400,000 tons.~~ To mitigate these gaps, Minister of Agriculture Andi Amran Sulaiman announced plans to construct three processing plants for egg and meat ~~powder,~~ powder. In the fertilizer sector, PT Pupuk Kalimantan Timur (Pupuk Kaltim) has expanded its international footprint through a Government-to-Government (G2G) scheme with ~~estimated investments~~ Australia. Following an initial shipment of ~~Rp200 billion to Rp250 billion each. Additionally,~~ 47,250 tons of urea in May 2026, the ~~Ministry is proposing interventions~~ company aims to ~~support poultry farmers, such as distributing 5,000~~ export 250,000 tons of ~~subsidized corn feed~~ urea by the end of 2026. For its manufacturing achievements, the company received the Primaniyarta 2026 award from the Ministry of Trade. Despite export efforts, the company maintains a focus on domestic food security, reporting production levels for ammonia, urea, and ~~providing corn seed assistance~~ NPK at approximately 79% to ~~stabilize prices and markets.~~ 82% of targets as of late September 2026.

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