BKPM Unveils Strategy to Attract Investment for Strategic Downstreaming Projects

The Ministry of Investment/Investment Coordinating Board (BKPM) has revealed the government’s steps to attract investment, particularly in the downstreaming sector through to industrialisation.

This is also to ensure that the downstreaming programme does not stop at raw products, but continues to create maximum added value domestically.

“Business actors and investors will not build industries without certainty or sustainability of their raw materials. Therefore, we identify data on which of our reserves are indeed the largest in the world, or at least where we are more advantaged than our competitor countries,” said Deputy for Strategic Investment Downstreaming at BKPM Heldy Satrya Putera at the Mindialogue 2026 event in Jakarta, as quoted on Thursday (13/8/2026).

So far, the government has mapped 28 priority commodities from the mineral, plantation, and marine sectors that have the largest reserve potential in the world. The selection of these commodities is based on Indonesia’s comparative advantages compared to other countries.

“What do we do so that investors want to come? First, we identify again who the champion investors are that truly have the best technology to process our natural resources. We map that out,” Heldy explained.

In addition to guarantees of raw materials and technology, the government offers various fiscal incentive facilities to attract foreign and domestic investors to enter the downstream sector. Meanwhile, the issue of human resource readiness is also anticipated through special vocational programmes supported by tax incentives for companies that train local workers.

“We encourage this with a vocational incentive package as well. We provide 20% of the total costs they incur for education. So they can receive incentives,” he added.

The ministry is now beginning to expand the downstreaming focus to various commodities such as bauxite, copper, and gold in order to build an integrated industrial ecosystem. Regulatory adjustments are also being made dynamically so that incoming investment does not pile up only at the initial processing stage, but continues through to final products.

“But as for certainty, we always strive for it and we also always look at how competitor countries are providing policies — if there are better ones, then we look at how to respond. So the changes are because of that,” he concluded.