The Indonesian government is intensifying efforts to boost the downstream processing of mineral and coal (minerba) commodities as a strategy to accelerate national economic growth. This aligns with President Prabowo Subianto's vision of achieving over 8% economic growth in the coming years. Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, highlighted the importance of downstream processing as a key driver to enhance GDP and per capita income. According to Bahlil, the government has outlined a roadmap for strategic downstream investments, projecting a total of USD 618 billion allocated to 28 commodities. Notably, 91% of this investment is concentrated in the energy and mineral resources sector, especially minerba and oil and gas. Bahlil emphasized that Indonesia's rich natural resources, including the world's largest nickel reserves (40-45% of global reserves), play a crucial role in these initiatives.
Bahlil also underscored the economic ripple effects of the minerba sector, particularly in job creation and regional economic development. He called for prudent resource management to balance supply and demand and maintain commodity price stability in global markets. Highlighting Indonesia’s position in other key commodities—such as tin (34.47% of global reserves), bauxite (9.8%), and gold (5.8%)—he described their potential to bolster the economy. Additionally, quartz sand, a critical component for solar panel production, is emerging as a strategic resource. Bahlil urged collaboration between the government and private sector to enhance mining industry governance, attract investments, and foster sustainable development. "We aim to create a fair system that benefits businesses and generates jobs, taxes, and royalties," he concluded.
