The Indonesian government has set an ambitious investment target of IDR 2,100 trillion for 2025, a 10% increase from IDR 1,900 trillion in 2024. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this growth relies heavily on the mineral and coal (minerba) downstreaming program, a key contributor to the economy, which accounts for 18% of GDP. Speaking at the Indonesia Mining Summit 2024 in Jakarta on December 4, 2024, he highlighted the importance of developing supply chain structures from upstream to downstream. Long-term projections by the Ministry of Energy and Mineral Resources (ESDM) estimate that 91% of the IDR 566.7 billion investment in downstreaming by 2040 will come from the minerba sector. The government has already supported this agenda through incentives like tax holidays and the designation of strategic national projects.
Airlangga also noted that 87 smelters are operational out of the planned 172, enhancing value-added production and strengthening Indonesia’s pricing power in global markets. Collaboration with countries like the U.S., Canada, and Australia on critical minerals has been initiated to attract more investments. Energy Minister Bahlil Lahadalia announced regulatory reforms and the establishment of a Downstreaming Task Force to ensure flexibility for businesses. Meanwhile, Parliament’s Commission XII Chair Bambang Patijaya urged for sustainable and high-quality investments that align with environmental, social, and governance (ESG) principles to transition from intermediate products to industrialization. The government views mineral downstreaming as a growth engine, aiming for economic expansion above 6% and creating quality jobs.
