Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, stated that Indonesia's revenue from the downstreaming policy could reach USD 70 billion, equivalent to IDR 1,221 trillion, by 2028. The downstreaming policy aims to export processed goods rather than raw materials, thereby increasing the value of exports, especially in commodities like nickel. "By 2028, I believe nickel exports could approach USD 75 billion, as we will be producing cobalt, precursors, cathodes, battery cells, and more," Luhut said during a working meeting with Commission II of the House of Representatives at the Parliament Complex in Senayan, Jakarta, on Wednesday, 5 June 2024. Luhut noted that the downstreaming policy has significantly boosted Indonesia's export value compared to a decade ago. For instance, in 2013, nickel export values stood at USD 2.33 billion, whereas in 2023, they soared to USD 24.28 billion. "If you look at this slide, nickel exports were USD 1.5 billion or USD 2 billion. Last year, we reached USD 40 billion. Without downstreaming, our economy would be shaky," he emphasized.
Luhut reiterated that the downstreaming program will remain a government development focus due to its proven ability to create added value. The strategy involves attracting investments to process raw materials domestically before allowing their export. "We are still focused on completing North Kalimantan, as the investment in petrochemicals there is substantial, amounting to several tens of billions of dollars," he explained. This significant increase in export revenue underscores the success of the downstreaming policy in transforming Indonesia's export landscape, fostering economic stability, and attracting substantial foreign investments in processing industries.
