BKPM Sees Great Opportunities for North Kolaka in Industrial Downstreaming and Investment
The potential for industrial downstreaming in North Kolaka garnered attention at the Kolaka Utara Industry, Trade & Investment Forum 2026, held at the Mercure Surabaya Grand Mirama on Monday (11/5/2026).
One of the main speakers at the forum, BKPM RI’s Director of Regional Promotion for Southeast Asia, Australia, New Zealand, and the Pacific, Saribua Siahaan, highlighted the importance of regional roles in supporting the national economic growth target of 8 per cent as directed by President Prabowo Subianto towards the Golden Indonesia 2045 vision.
In her presentation, Saribua explained that the central government is currently focusing on strengthening investments in strategic national sectors, including new and renewable energy, industrial downstreaming, and food security.
According to her, downstreaming is a crucial strategy so that Indonesia’s flagship commodities are no longer sold only as raw materials but can be processed into value-added products that create jobs and enhance national competitiveness.
“The government continues to encourage economic transformation through downstreaming and strengthening regional investments. Therefore, regions with superior resources like North Kolaka have great opportunities to grow faster,” said Saribua Siahaan.
She noted that the central government is continuously improving the investment climate through permitting ease based on the Job Creation Law, integrated services for investors, and the provision of ready-to-offer investment projects.
Throughout 2025, national investment realisation reached Rp1,931.2 trillion, exceeding the government target by 101.3 per cent. That investment also absorbed more than 2.7 million local workers.
This positive trend continued into early 2026, with first-quarter investment realisation reaching Rp498.8 trillion. Of that amount, the downstreaming sector made a significant contribution of 29.6 per cent to total national investment.
Saribua explained that the current national downstreaming focus covers various strategic commodities such as nickel, copper, palm oil, and natural gas, spread across various regions of Indonesia.
At the forum, North Kolaka was assessed to have a strategic position supported by strong natural resources in the plantation, fisheries, and mining sectors.
Data presented by BKPM shows that investment realisation in North Kolaka during the 2021–2026 period reached around Rp1.58 trillion. That value was dominated by the basic metals and mining subsector, but it is still wide open for agribusiness downstreaming development.
Besides nickel, the potential of cocoa and coconut was also seen as promising investment opportunities because they have a continuously growing industrial market both domestically and internationally.
The central government, continued Saribua, is also preparing various fiscal incentives for investors entering priority sectors, such as tax holidays, tax allowances, and import duty exemptions for certain business activities.
The investment forum was also attended by national investors, industry players, international trade delegations, and various commodity processing companies from both inside and outside the country.
Through the forum, the North Kolaka Regency Government hopes that the opening investment opportunities can lead to concrete collaborations to accelerate the development of downstream industries based on local resources.