Jokowi: Thanks to Downstreaming and Industrialization of Natural Resources, 2021 Iron and Steel Exports Soared to Rp306 Trillion

President Joko Widodo (Jokowi), during the Annual Session of the People's Consultative Assembly (MPR), the House of Representatives (DPR), and the Regional Representatives Council (DPD) in commemoration of the 77th Anniversary of the Proclamation of the Independence of the Republic of Indonesia, stated that the downstreaming and industrialization of natural resources (SDA) in Indonesia need to be continuously driven.

This is because downstreaming and industrialization are considered effective in increasing economic added value amidst the Covid-19 health crisis. Currently, the global economy has not fully recovered and is exacerbated by the war in Ukraine, which has resulted in food, energy, and financial crises. 107 countries are affected by the crisis, some of which are expected to go bankrupt.

“However, amidst these significant challenges, we should be grateful that Indonesia is among the countries that have been able to cope with this global crisis,” said President Jokowi in his state address at the Annual Session of the MPR, DPR, and DPD RI, in Senayan, Jakarta (16/8/2022).

According to Jokowi, downstreaming and industrialization of resources must continue. Nickel downstreaming, for example, has increased iron and steel exports 18-fold. In 2014, the value of iron and steel exports was only around Rp 16 trillion, but in 2021 it had increased to Rp 306 trillion. By the end of 2022, it is targeted to reach Rp 440 trillion.

Based on data from the Central Statistics Agency (BPS), Indonesia's iron/steel export volume increased by 49.5% to 13.81 million tons in 2021 compared to the previous year. Similarly, its export value surged by 90.05% to US$ 21.49 billion or equivalent to Rp 306 trillion (with an exchange rate of Rp 14,278 per US dollar) in 2021 compared to the previous year.

The value of national iron/steel exports accounted for 66.53% of the total value of basic metal industry exports worth US$ 32.27 billion last year.

The following are the export volumes of the basic metal industry in 2021:

Basic Metal Industry: 16,012.18 thousand tons
Iron/Steel: 13,812.22 thousand tons
Copper: 348.73 thousand tons
Precious Basic Metals: 1.84 thousand tons
Tin: 75.54 thousand tons
Nickel: 166.33 thousand tons
Aluminum: 236.45 thousand tons
Non-Iron Basic Metals: 1,357.26 thousand tons