BKPM Reveals Evidence of Investors Accelerating into Downstream Processing

Investments in downstream processing reached 29.6% of the total realised investment for the first quarter of 2024, which stood at Rp 498.8 trillion.

“The contribution from investments in sectors related to downstream processing is quite significant and could increase further in the future,” said Minister of Investment/Head of BKPM, Rosal Perkasa Roeslani, during a press conference in Jakarta on Thursday (23/4).

Of the total realised downstream processing investment of Rp 147.5 trillion, Rp 98.3 trillion was for mineral downstream processing. The breakdown includes nickel Rp 41.5 trillion, copper Rp 20.7 trillion, iron and steel Rp 17.0 trillion, bauxite Rp 13.7 trillion, tin Rp 2.5 trillion, and others Rp 2.9 trillion.

Then, downstream processing in plantations and forestry amounted to Rp 29.8 trillion. The details are palm oil Rp 18.3 trillion, log wood Rp 7.0 trillion, rubber Rp 2.4 trillion, and others Rp 2.1 trillion. “We want investments in downstream processing of plantations and forestry to also increase,” he stated.

Subsequently, downstream processing of oil and natural gas (migas) reached Rp 17.7 trillion, consisting of crude oil Rp 13.6 trillion and natural gas Rp 4.1 trillion.

Meanwhile, downstream processing in fisheries and marine affairs amounted to Rp 1.7 trillion. Commodities in this sector include salt, TCT fish (tuna, skipjack, mackerel), shrimp, seaweed, crab, and tilapia.

“We see that investments in downstream processing of fisheries and marine affairs could increase in the next semester,” said Rosan.

The majority of realised downstream processing investments are located outside Java, namely 75.5% or Rp 111.4 trillion. The largest are in Southeast Sulawesi (Sulteng) Rp 24.1 trillion, North Maluku (Malut) Rp 18.6 trillion, West Java Rp 13.0 trillion, West Nusa Tenggara (NTB) Rp 12.9 trillion, and Riau Islands Rp 9.6 trillion.