According to a report from the Indonesian Investment Ministry/Investment Coordinating Board (BKPM), investment realization in the downstream sector reached Rp272.91 trillion (approximately US$17.9 billion based on the exchange rate in October 2024) during January-September 2024. This achievement represents 21.6% of total national investment realization.
Up to September 2024, the most significant downstream investment flowed into the mineral sector, totaling Rp170.78 trillion.
This investment was distributed as follows: Rp113.77 trillion for nickel smelters, Rp45.72 trillion for copper smelters, Rp10.79 trillion for bauxite smelters, and Rp0.5 trillion for tin smelters.
Next, downstream investment in the agricultural sector, particularly the crude palm oil (CPO) and oleochemical industries, amounted to Rp44.09 trillion.
Following this, downstream investment in the forestry sector, specifically the pulp and paper industries, reached Rp33.72 trillion. This was followed by the oil and gas sector, particularly petrochemicals, with Rp17.47 trillion.
Finally, downstream investment in the electric vehicle ecosystem, specifically the battery industry, amounted to Rp6.86 trillion.
Investment Minister/Head of BKPM Rosan Roeslani stated that the government has also developed a roadmap for downstreaming in other sectors, including seaweed.
He assessed that Indonesia possesses abundant seaweed commodities, and its derivative products are projected to provide significant added value to the national economy.
"Along our coastline, there is a vast amount of seaweed with enormous potential, and it's already underway, but it needs to be further developed into a proper and effective production ecosystem," said Roeslani in a press conference on the BKPM YouTube channel, Tuesday (October 15, 2024).
The government also plans to pursue downstreaming of palm oil, rubber, coconut, nutmeg, and fish and crab.
"We will try to push all of these, but we will look at where the advantages lie. For example, with nickel, that's why nickel downstreaming is being prioritized," said Rosan.