Jakarta (ANTARA) \u2013 Industry Minister Muhammad Sarmuji is encouraging\nthe development of downstreaming so that it does not stop at processing\nraw materials into intermediate products, but grows into a new ecosystem\nthat fosters supporting industries.<\/p>\n
Sarmuji said downstreaming natural resources is the starting point of\nindustrialisation and must continue through to the production of\nfinished goods, while also encouraging supporting industries to emerge\nwithin the supply chain.<\/p>\n
\u201cDownstreaming our natural resources is the starting point of\nindustrialisation. The term \u2018downstreaming\u2019 actually refers to the\nbeginning of an industrialisation process that we will continue to\ndevelop,\u201d Sarmuji said at the Indonesian Chamber of Commerce and\nIndustry\u2019s (Kadin) national leadership meeting in Jakarta on Friday.<\/p>\n
He stressed that industrialisation should not be judged solely by the\nscale of investment it attracts. It should also be assessed by increases\nin value added, industrial technological capabilities, employment and\nthe creation of domestic supply chains.<\/p>\n
Sarmuji cited the development of the nickel industry, which has\nprogressed from ore processing to intermediate products, battery\ncomponents and electric vehicles.<\/p>\n
The aim, he said, is for this development to produce more than a\nsingle type of product and to create a new industrial ecosystem\ninvolving a range of supporting sectors.<\/p>\n
Stronger links across industries, from upstream to downstream, can\nalso generate multiplier effects, including increased investment and\nemployment, growth in small and medium industries (IKM), and the\nexpansion of machinery, logistics, services and other economic\nsectors.<\/p>\n
Alongside nickel, the government is encouraging the development of\nother leading commodities that could become sources of Indonesia\u2019s\ncomparative advantage, including palm oil, seaweed, sago and\nbiodiversity.<\/p>\n
Sarmuji said Indonesia\u2019s biodiversity offers significant potential\nfor development as a source of raw materials for the pharmaceutical\nindustry through extraction and further development.<\/p>\n
He cited plants familiar in traditional use, such as pasak bumi and\ncat\u2019s whiskers, as potential sources of pharmaceutical ingredients that\ncould be developed further.<\/p>\n
\u201cHopefully, one day we will be able to extract our biodiversity to\nproduce raw materials for medicines, which we currently continue to\nimport in very large quantities,\u201d he said.<\/p>\n
The coconut and seaweed industries also have strong prospects.\nSeaweed, for example, can be processed into a range of raw materials for\ncosmetics, medicines, food and beverages.<\/p>\n
Developing industries based on these commodities is expected to\ndeliver wider economic benefits, particularly for communities in coastal\nareas.<\/p>\n
To strengthen the industrialisation ecosystem, the Ministry of\nIndustry is also promoting greater use of domestically made products\nthrough the Domestic Component Level (TKDN) policy.<\/p>\n
He said research and simulations by Statistics Indonesia (BPS)\nindicate that every Rp1 spent on domestic products can generate an\nimpact of Rp2.2 on national economic growth.<\/p>\n
In addition, import substitution worth Rp400 trillion could raise\nnational economic growth by 1.71 per cent and generate an additional\nRp627.58 trillion in economic output.<\/p>\n
The industrial ecosystem is also being strengthened by expanding\npartnerships between small and medium industries and large\nmanufacturers, enabling smaller businesses to join manufacturing supply\nchains.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/industry-minister-seeks-to-use-downstreaming-to-create-supporting-industries-1793354066", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }