The Investment Minister and the chief of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, affirmed the government's commitment to accelerating downstream processing in Papua by developing industrial infrastructure. In a statement made in Jakarta on Monday, Minister Bahlil outlined the acceleration plan, which includes constructing a smelter by PT Freeport Indonesia (PTFI), building a fertilizer plant, and developing sugar and ethanol industries from sugarcane in Papua. He highlighted that with the government holding a 61% stake in Freeport, the development of the smelter in Papua is becoming more feasible. Bahlil emphasized that development in Indonesia's easternmost region cannot solely rely on the Special Autonomy (Otsus) budget provided by the government. Thus, to expedite economic advancement in Papua, the downstream processing program is seen as a solution for achieving equitable economic growth. "The future of Papua will be built. We cannot continue to rely on Otsus funds if they cannot be managed effectively. These Otsus funds are merely affirmative for the people of Papua, so they can be on par with their counterparts in other regions," he stated.
Furthermore, Bahlil mentioned that the acceleration of downstream processing in the region is part of the government's efforts to create job opportunities for Papuan students, both domestically and internationally. He cited areas like Morowali, Halmahera, and Sorong, where downstream processing has provided a multiplier effect on economic development and job creation. "Sorong has progressed remarkably. The special economic zone is set to compete with industrial areas in North Maluku. In Sorong, we are promoting fertilizer and blue ethanol production in Bintuni. Similarly, in the Nabire block, formerly owned by Freeport, significant progress can be made if we are prepared. The prospects for Papua are promising," he said. Minister Bahlil previously announced the government's plan to increase its ownership in PT Freeport Indonesia (PTFI) by 10% and extend the company's Special Mining Business License (IUPK) until 2061 to support downstream processing. He also noted that with majority ownership in PTFI, the government can more easily implement downstream processing policies, particularly for copper commodities.
