The Indonesian Ministry of National Development Planning (Kementerian PPN/Bappenas) has outlined comprehensive regulations for the downstreaming program as part of the National Medium-Term Development Plan (RPJMN) for 2025-2029. It is expected that the next president, following Joko Widodo (Jokowi), will be obligated to continue this vital program for commodities like nickel and palm oil. Minister Suharso Monoarfa stressed the importance of continuing the downstreaming of both mining and non-mining commodities, including plantations, as a response to the declining contribution of the manufacturing sector to the country's Gross Domestic Product (GDP). The government's goal is to boost this contribution to exceed 20%. Minister Suharso cited the successful example of the nickel downstreaming program, which, despite international opposition, added significant export value through processed nickel products. The aim is to attract domestic investments, ensuring that economic benefits are generated within Indonesia.
Furthermore, the downstreaming program will be extended to other key commodities, including aluminum, iron ore, and especially palm oil. The government plans to transform the palm oil sector into a petrochemical complex, moving beyond just producing cooking oil. The objective is to ensure that the entire supply chain is developed domestically, increasing the complexity of the industry and altering the contribution of the manufacturing sector. These initiatives align with Indonesia's vision to retain economic value within the country, fostering economic growth and reducing poverty rates, as exemplified by the significant economic growth and poverty reduction seen in regions embracing the downstreaming of commodities like nickel.
