The Indonesian government has successfully implemented its mining downstreaming policy, particularly in nickel. In 2022, Indonesia reportedly received a windfall from its nickel downstreaming, totaling to USD 33.8 billion or around IDR 519 trillion (with a conversion rate of IDR 15,365 per USD). This was announced by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, through his official Instagram account.
Luhut stated that the data was also presented to the IMF during their visit to his office a few days ago. He mentioned that Indonesia used to export all of its raw materials for free, but not anymore. Currently, Indonesia is able to export iron and steel, not just nickel ores. "We will do the same with tin, bauxite, copper, and others. This significant change must be seen by developed countries. This is their problem," Luhut said.
"Developed countries always see Indonesia as a country they knew 20 or 15 years ago. By imposing a ban on nickel exports, we have the power to produce green energy that we have long aspired for," Luhut added.
On the other hand, Luhut also announced in front of top business leaders from Indonesia and Asia that by 2025, Indonesia will be able to produce lithium batteries on its own. This will make Indonesia the world's third-largest producer of lithium batteries by 2027 or 2028. "So, don't look down on Indonesia," Luhut said.
This is not just a dream as Luhut mentioned an investment of USD 31.9 billion for the development of the industrial battery supply chain in Indonesia until 2026. Indonesia managed to attract USD 45.6 billion in foreign direct investment last year, which is a new record high since 2000, as stated by Luhut.
