The Indonesian government is set to collaborate with two countries, including China, to develop Special Economic Zones (KEK). This initiative, announced by Deputy for Energy & Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs, Elen Setiadi, at the CNBC Indonesia Mining Forum 2025, aims to boost industrial growth and economic expansion through downstream processing. The Batang region is being considered as a key location for this initiative, providing significant opportunities for economic advancement.
The government remains committed to advancing downstream industries to strengthen economic resilience amid global geopolitical uncertainties. President Prabowo Subianto's administration is focused on securing Indonesia’s natural resources to mitigate external disruptions. Downstream processing is seen as a strategy to enhance energy security and ensure sustainable mineral resource management. Policies initiated by former President Joko Widodo will be continued, with a strong ecosystem supporting industrial development. This approach is expected to drive GDP growth to 8% while creating extensive employment opportunities across industries. With an integrated downstream strategy, Indonesia aims to accelerate growth in the mining sector, reduce dependence on global markets, and establish a robust economic foundation for the future.
