Minister of Investment/Head of BKPM Bahlil Lahadalia said the direction of Indonesia's investment policy would remain focused on downstreaming which penetrated up to 21 commodities with a total investment value of US$545.5 billion by 2040. With an estimated IDR 15,000 per US dollar, the total investment value being pursued related to the downstream of commodities worth US$545.5 billion, equivalent to Rp.8,182 trillion. "Investment roadmap for the downstream sector. So minerals, coal, oil, natural gas, plantations, marine, the total investment going forward is 21 sectors. All the downstream economic trees are complete," he said during a Working Meeting with Commission VI of the DPR RI in Jakarta, Monday (6/2/2023), quoting Antara.
The Ministry of Investment/BKPM has grouped investment needs up to 2040 consisting of 8 priority sectors namely minerals, coal, oil, natural gas, plantations, marine, fisheries and forestry.
In detail, the 8 sectors consist of 21 commodities, namely coal, nickel, tin, copper, bauxite, steel, dairy gold, Buton asphalt, petroleum and natural gas. Then for the plantation and forestry sector, it consists of coconut, rubber, bio fuel, logs, and pine resin. Then the marine and fisheries sector, shrimp, fisheries, crab, seaweed and salt.
"If we can do this well, we focus here, then this is one of Indonesia's paths to go from developing to developed countries and increase our per capita income from US$4,500 to US$9,000-US$10,000," said Bahlil. For priority in 2023, Indonesia will again ban the export of raw goods, namely bauxite and then follow copper and tin. Currently, the construction of a copper smelter by PT Freeport Indonesia in the Gresik Special Economic Zone (SEZ), East Java has reached 50 percent. So that at the beginning of 2024, there will be no more raw copper commodities to be exported.
Bahlil further said that the trend of investment realization had increased since 2019-2022, even though more investors chose the downstream sector rather than labor-intensive. Investment realization in 2022 was recorded at IDR 1,207 trillion, an increase of 34 percent compared to 2021 which amounted to IDR 901 trillion and in 2020 amounted to IDR 826 trillion. Investment realization in 2022 that exceeds this target, as much as 54.2 percent comes from Foreign Investment (PMA) and the remaining 45.8 percent from Domestic Investment (PMDN). "The (work) fields that we created with a figure of IDR 1,200 trillion are approximately 1.3 million direct workers, but Alhamdulillah we can finish with 1305,001 people," Bahil explained. As for the top investor countries, it is still dominated by Singapore with an investment value of US$13,261 million, followed by China with US$8,226 million and Hong Kong with US$5,514 million.
