Hilirisasi Investment in the First Semester of 2024 Highest in the Minerals Sector

According to data from the Indonesian Investment Ministry/Investment Coordinating Board (BKPM), downstream investment realization in the first half of 2024 reached Rp181.4 trillion.

Investment Minister/Head of BKPM Bahlil Lahadalia stated that this figure represents 21.9% of total investment received by Indonesia in the first half of this year.

In the first half of 2024, the most downstream investment flowed into the mineral sector, reaching Rp114.1 trillion.

This investment was divided among nickel smelters (Rp80.9 trillion), copper smelters (Rp28 trillion), bauxite smelters (Rp5.1 trillion), and tin smelters (Rp0.1 trillion).

"Tin [investment] is still small, but the tin industry is different from nickel or bauxite, as its investment value is not as high," said Bahlil in a press conference on Monday (July 29, 2024).

Next, there was downstream investment in the forestry sector, specifically the pulp and paper industry, worth Rp24.5 trillion.

Then, downstream investment in the agricultural sector, particularly the crude palm oil (CPO) and oleochemical industry, reached Rp23.6 trillion; and in the oil and gas sector, specifically the petrochemical industry, Rp13.2 trillion.

"Petrochemicals include Lotte in Cilegon. Lotte is likely to start production in February or March next year; it's one of the stalled investments," said Bahlil.

Meanwhile, downstream investment in the electric vehicle ecosystem, specifically the battery industry, amounted to only Rp6 trillion.

Total investment flowing into Indonesia in the first half of 2024 reached Rp829.9 trillion, a 22.3% increase compared to the first half of last year (year-on-year/yoy).

This figure comprises foreign direct investment (FDI) of Rp421.7 trillion (50.98%), and domestic direct investment (DDI) of Rp408.2 trillion (49.2%). This achievement absorbed 1.22 million workers.