The Indonesian government is actively promoting economic digitalization through downstream policies to establish a high-value industrial base capable of driving economic growth. This was highlighted by Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, during the High-Level Multi-Stakeholder Partnership Forum (HLP MSP). Luhut emphasized that Indonesia, the world's largest archipelagic country, is endowed with abundant natural resources crucial for energy transition. Historically, Indonesia has relied on exporting raw commodities, leading to a high current account deficit when commodity prices drop.To address this, the government is implementing a downstream policy aimed at transforming the economy by developing high-value-added industries. In the future, the government plans to build a high-value industrial base. Additionally, efforts are being made to allocate low-emission energy sources for industries to enhance their value. The government is also forming a quality talent pool through screening programs for graduates in engineering and science, directing them to work in leading technology companies. The downstream policy has notably increased the export value of downstream nickel products such as iron, steel, and lithium battery materials. Indonesia is currently developing a domestic lithium battery industry ecosystem. The primary goal of nickel downstreaming is to create a competitive ecosystem within the lithium battery and electric vehicle value chain.Moreover, Luhut stated that Indonesia is collaborating with leading companies from China, Japan, South Korea, and the United States to ensure that their downstream industries, including stainless steel, EV battery components like cathodes, battery cells, and packaging, receive an adequate supply of processed nickel from Indonesia. This collaboration aims to establish a robust and competitive industrial ecosystem, fostering Indonesia's transition towards a high-value, sustainable economy.

Source: https://www.metrotvnews.com/read/KYVCDdd3-luhut-dorong-digitalisasi-ekonomi-melalui-downstream-policy