Bauxite Downstream Investment Surges Ninefold in First Quarter of 2025
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has projected that investment in bauxite downstreaming will continue to rise in the coming years.
BKPM data shows that realised bauxite investment in the first quarter of 2025 surged to Rp12.84 trillion, compared with Rp1.4 trillion in the same period last year.
Minister of Investment and Downstreaming/BKPM Head Rosan P Roeslani said that investment in bauxite downstreaming had previously been far less significant compared with nickel, copper and other commodities.
"Bauxite, which has not developed rapidly until now — we expect it to become one of the fastest-growing sectors in downstreaming going forward," Rosan said at a press conference on Tuesday (29 April 2025).
He explained that the early results this year mark a milestone in the positive trend of downstreaming investment, particularly in the mineral sector. Rosan acknowledged that mineral investment had previously been concentrated on nickel but is now shifting towards copper, bauxite and other commodities.
Overall, realised investment in the mineral sector in the first quarter of 2025 reached Rp97.60 trillion, up from Rp43.2 trillion in the same period last year.
In detail, nickel sector investment remained in first place at Rp47.82 trillion, followed by copper at Rp17.70 trillion, bauxite at Rp12.48 trillion, iron and steel at Rp12.01 trillion, tin at Rp1.3 trillion, and others at Rp5.70 trillion.
"We will try to push this towards derivative products so that the value added can be captured and create employment," he said.
Nevertheless, Rosan explained that downstreaming efforts would also be accelerated in other sectors such as maritime industries. The government, through the Ministry of Marine Affairs and Fisheries, will promote downstreaming in the seaweed and tilapia sectors.
"We will push for the development of downstreaming in the maritime sector so that the range of commodities becomes more varied," he concluded.
Overall, total downstreaming investment in the first quarter of 2025 reached Rp136 trillion, rising 79.82 per cent year-on-year and contributing 29.3 per cent of total investment for the period.
BKPM data shows that realised bauxite investment in the first quarter of 2025 surged to Rp12.84 trillion, compared with Rp1.4 trillion in the same period last year.
Minister of Investment and Downstreaming/BKPM Head Rosan P Roeslani said that investment in bauxite downstreaming had previously been far less significant compared with nickel, copper and other commodities.
"Bauxite, which has not developed rapidly until now — we expect it to become one of the fastest-growing sectors in downstreaming going forward," Rosan said at a press conference on Tuesday (29 April 2025).
He explained that the early results this year mark a milestone in the positive trend of downstreaming investment, particularly in the mineral sector. Rosan acknowledged that mineral investment had previously been concentrated on nickel but is now shifting towards copper, bauxite and other commodities.
Overall, realised investment in the mineral sector in the first quarter of 2025 reached Rp97.60 trillion, up from Rp43.2 trillion in the same period last year.
In detail, nickel sector investment remained in first place at Rp47.82 trillion, followed by copper at Rp17.70 trillion, bauxite at Rp12.48 trillion, iron and steel at Rp12.01 trillion, tin at Rp1.3 trillion, and others at Rp5.70 trillion.
"We will try to push this towards derivative products so that the value added can be captured and create employment," he said.
Nevertheless, Rosan explained that downstreaming efforts would also be accelerated in other sectors such as maritime industries. The government, through the Ministry of Marine Affairs and Fisheries, will promote downstreaming in the seaweed and tilapia sectors.
"We will push for the development of downstreaming in the maritime sector so that the range of commodities becomes more varied," he concluded.
Overall, total downstreaming investment in the first quarter of 2025 reached Rp136 trillion, rising 79.82 per cent year-on-year and contributing 29.3 per cent of total investment for the period.