The government is continually striving to drive economic transformation by encouraging productive investments that create high added value. It consistently promotes export-oriented investments to strengthen external balance, particularly the current account balance. Minister of Finance Sri Mulyani Indrawati stated that downstream investments supporting the supply chain for electric vehicles and renewable energy have yielded positive results. These programs need to continue, including the development of high-tech industries such as semiconductors, which are the backbone of modern technology in the Industry 4.0 era. "To achieve this, we need support from a quality workforce, adequate connectivity infrastructure, and improvements in bureaucracy and regulatory systems to enhance investment efficiency and competitiveness," Sri Mulyani said during a plenary session at the parliamentary complex in Senayan, Jakarta, on Monday, May 20, 2024. She noted that the efforts to accelerate structural reforms through downstream strategies, especially for natural resources, have shown tangible results. This is reflected in the improved export performance over the past few years. The export value in 2022 reached USD 292 billion, up from USD 176 billion in 2014, marking the highest record in history.
In 2022, the trade balance surplus also recorded a historic high of USD 54.5 billion, significantly higher than the USD 2.2 billion deficit in 2014. The sharp increase in export performance was mainly driven by downstream products, particularly nickel and palm oil products. Although the trade balance slightly declined in 2023 due to economic slowdown and falling commodity prices, it still recorded a substantial surplus of USD 36.9 billion. The provinces of Central Sulawesi and North Maluku experienced significant growth, supported by nickel downstreaming, with growth rates of 6.4% and 6.9%, respectively, far exceeding the national growth rate of 5.05%. "Downstreaming has also succeeded in creating new growth sources outside Java Island," Sri Mulyani explained. Furthermore, to promote quality and sustainable growth, it is necessary to develop a green economy aligned with global commitments. The green economic transition strategy includes investments in renewable energy, energy efficiency, sustainable transportation, human resources aligned with green economy skills, and natural resource management and conservation.
