Indonesian Political, Business & Finance News

Downstream Investment Realisation Tops Rp 300 Trillion, Dominated by Minerals

| | Source: FINANCE.DETIK.COM Translated from Indonesian | Investment
Downstream Investment Realisation Tops Rp 300 Trillion, Dominated by Minerals
Image: FINANCE.DETIK.COM

Investment and Downstream Minister/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, reported growth in total downstream sector investment, underpinned by the mineral segment which contributed over Rp 200 trillion. Total downstream investment realisation reached Rp 300.1 trillion in the first half of 2026, growing 6.9% year-on-year. Rosan stated that the contribution of downstream processing to total investment realisation reached 29.7% as of the end of June 2026. On a quarterly basis, total downstream investment realisation hit Rp 152.7 trillion, rising 5.7% year-on-year in the second quarter of 2026, accounting for 29.8% of total investment realisation for the period. The mineral sector dominated downstream investment, recording a total of Rp 206.5 trillion. This included nickel products at Rp 71 trillion, bauxite at Rp 53.8 trillion, copper at Rp 37.4 trillion, iron and steel at Rp 30.2 trillion, silica sand at Rp 5.9 trillion, and other mineral commodities at Rp 8.2 trillion. However, based on second-quarter data, bauxite became the largest contributor with total investment of Rp 40.1 trillion, driven by several new bauxite processing facility constructions. Rosan noted that nickel usually holds the top position, but a shift occurred due to domestic and foreign bauxite facility developments. The plantation and forestry sector recorded downstream investment of Rp 54.4 trillion, comprising palm oil at Rp 29.5 trillion, timber at Rp 16.3 trillion, rubber at Rp 5 trillion, and other products at Rp 3.6 trillion. Oil and gas downstream investment reached Rp 35.4 trillion, while fisheries and marine sector investment stood at Rp 3.8 trillion. Geographically, downstream investment was concentrated outside Java, accounting for 75.7% or Rp 227.3 trillion, while Java contributed 24.3% or Rp 72.8 trillion. Domestic investment totalled Rp 87.3 trillion, while foreign direct investment reached Rp 212.8 trillion, with major locations including North Maluku, Sulawesi, and West Nusa Tenggara.

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