Investment in Indonesia\u2019s downstream processing sector reached\nRp300.1 trillion in the first half of 2026, or about 29.7 per cent of\ntotal national investment. The scale of investment should be matched by\ngreater employment, technology transfer and participation by domestic\ncompanies so that the economic benefits are not concentrated solely in\nlarge industries.<\/p>\n
Sarlina Sari, an academic at the Faculty of Economics and Business at\nBina Sarana Informatika University, said the success of downstream\nprocessing could not be measured by investment value alone. The\ngovernment must also ensure that the development of processing\nindustries increases the added value of natural resources and expands\nemployment opportunities for the public.<\/p>\n
Sarlina said the downstream-processing policy championed by President\nPrabowo Subianto needed to be accompanied by improvements in human\nresources and national industrial capacity. This would ensure Indonesia\nbecame more than a site for processing raw materials, enabling it also\nto develop technology and supporting industries.<\/p>\n
\u201cI welcome President Prabowo Subianto\u2019s continued efforts to promote\ndownstream processing as part of the national economic transformation.\nIndonesia has abundant natural resources, and the challenge is to turn\nthem into high-value-added products, strengthen national industry and\ncreate quality jobs for the public,\u201d Sarlina said in a statement in\nJakarta on Sunday (11 October 2026).<\/p>\n
Downstream industries are being developed, among other places, at the\nIndonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, North\nMaluku. On 8 October 2026, the government launched 11 industrial\nprojects with total investment of about Rp180 trillion.<\/p>\n
Four of the projects have entered the commercialisation stage, while\nconstruction has begun on the other seven. They cover batteries,\nnickel-based materials, aluminium, electric heavy equipment and\nsupporting industries for solar energy.<\/p>\n
The 11 projects are projected to create more than 10,000 jobs.\nHowever, Sarlina said investment on this scale should also increase\nnational technological capabilities and the involvement of domestic\nsuppliers.<\/p>\n
\u201cWhat matters is not only the size of the investment, but also how\nfar it can build a strong industrial ecosystem, increase national\ntechnological capacity and create added value at home. Downstream\nprocessing must be an instrument for strengthening Indonesia\u2019s\ncompetitiveness in global industrial supply chains,\u201d she said.<\/p>\n
Sarlina also highlighted the role of Investment and Downstream\nProcessing Minister and BKPM head Rosan Perkasa Roeslani in driving\ninvestment realisation. Efforts to attract investors, she said, needed\nto be accompanied by regulatory certainty, infrastructure development\nand improved skills among local workers.<\/p>\n
\u201cThe role of Investment and Downstream Processing Minister Rosan\nRoeslani is important in ensuring that investment commitments are\ntranslated into productive economic activity. We hope investment will go\nbeyond the construction of industrial facilities and also create\nopportunities for local workers, strengthen domestic suppliers and\nencourage the growth of national supporting industries,\u201d she said.<\/p>\n
According to data from the Ministry of Investment and Downstream\nProcessing\/BKPM presented in the material, total national investment\nrealisation reached Rp1,010.6 trillion in the first half of 2026. This\nwas 7.2 per cent higher than in the same period a year earlier, with\nemployment reaching 1,448,862 people.<\/p>\n
Sarlina said investment growth needed to be accompanied by stronger\nbusiness links between large industries and micro, small and\nmedium-sized enterprises (MSMEs). Universities and regional governments\nalso had a role to play in preparing workers to meet industry needs.<\/p>\n
\u201cQuality investment is investment that delivers sustainable economic\nbenefits. That is why cooperation between government, business,\nuniversities and the public needs to be strengthened. Universities can\ncontribute through research, innovation, vocational education and\ndeveloping human resources suited to industry needs,\u201d she said.<\/p>\n
Alongside the economic impact, Sarlina stressed the importance of\nenvironmental management, energy efficiency and workplace safety in\nindustrial zones. She said downstream development needed to take\nsustainability into account so that the benefits of investment could be\nfelt over the long term.<\/p>\n
\u201cIndonesia needs to ensure that its transformation from a\nraw-material exporter into an industrial nation delivers long-term\nbenefits. We want natural resources not only to generate economic value,\nbut also to lay the foundations for technological progress, a\nbetter-skilled workforce and public welfare,\u201d Sarlina said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/academics-applaud-governments-push-for-value-added-downstream-processing-1791701460", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }