Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, underscores the government's commitment to accelerating downstreaming initiatives in Papua through the development of industrial infrastructure. This commitment involves plans to construct smelters by PT Freeport Indonesia (PTFI), fertilizer plants, and the advancement of sugar and ethanol industries from sugarcane in the region. Bahlil emphasizes that Papua's economic advancement cannot rely solely on the Special Autonomy (Otsus) budget, necessitating downstreaming programs to foster equitable economic growth. With the government poised to own 61% of Freeport's shares, the construction of smelters in Papua gains feasibility. Acknowledging the importance of job creation, particularly for Papuan students, Bahlil highlights the downstreaming initiatives as a means to generate employment opportunities both domestically and abroad.
Several regions, including Morowali, Halmahera, and Sorong, have experienced sustainable economic development and job creation through similar downstreaming endeavors. Sorong, in particular, has made remarkable progress, designated as a special economic zone to compete with industrial areas in North Maluku. Efforts in Sorong encompass the promotion of fertilizer and blue ethanol production in Bintuni, along with similar initiatives in Nabire's former Freeport block. Previously announced plans involve the government increasing its share ownership by 10% in PT Freeport Indonesia (PTFI) and extending the company's Special Mining Business License (IUPK) contract until 2061 to support downstreaming efforts. Bahlil's remarks underscore the strategic importance of downstreaming initiatives in Papua for fostering economic growth and job creation, signaling the government's commitment to realizing these objectives through infrastructure development and strategic partnerships.
