Indonesian Political, Business & Finance News

Academic highlights importance of building integrated value chain for downstreaming

| Source: ANTARA_ID Translated from Indonesian | Economy
Academic highlights importance of building integrated value chain for downstreaming
Image: ANTARA_ID

The challenge is to build national technological capability in a comprehensive manner, not merely to increase production capacity.

Jakarta (ANTARA) - Andalas University Faculty of Engineering Professor Is Prima Nanda has highlighted the importance of the ability to build an integrated value chain in mineral downstreaming.

According to him, Indonesia’s biggest challenge today is no longer the availability of mineral resources, but rather the ability to build an integrated value chain from refining, material engineering, to manufacturing.

“To move up to high-value technology products, Indonesia needs to master refining technology, material engineering, product design, and its manufacturing processes. The challenge is to build national technological capability in a comprehensive manner, not merely to increase production capacity,” said Is Prima Nanda in his statement in Jakarta on Wednesday.

He said that materials are the foundation of nearly all technology. Minerals such as nickel, copper, bauxite, tin and other critical minerals, he said, will only provide greater added value if they can be engineered into materials with specific characteristics and performance.

Such advanced materials can become the foundation of various strategic technologies, ranging from batteries, electric vehicles, electronics, clean energy, the defence industry to the aerospace sector.

“If we only master the resources, we remain dependent on other parties for the technology and final products. Conversely, if we master both the materials and the technology, we have the opportunity to become a technology maker, not just a resource provider,” he said.

This view is in line with the direction of advanced material industry development being promoted by Danantara Indonesia.

BPI Danantara Chief Technology Officer Sigit Puji Santosa explained that Indonesia has strength on the upstream side in the form of abundant strategic minerals, such as nickel, copper, tin, bauxite, rare earth metals and steel.

Indonesia also has strength on the downstream side through national industrial demand, particularly from state-owned enterprises in the energy, transportation, defence, aerospace, maritime, electronics and other manufacturing sectors.

The rise of Indonesian technology is rooted in the ability to master innovation that is translated into industrial strength and tangible benefits for society.

The momentum of National Technology Awakening Day and the 81st Anniversary of the Republic of Indonesia underscores the importance of long-term investment and industrial independence to build an Indonesia that is increasingly sovereign, just and prosperous.

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