Downstream Investment Surges 79.82% in Q1 2025, Reaching Rp 136.3 Trillion
Investment realisation in the downstream processing sector recorded a significant surge in the first quarter of 2025, reaching Rp 136.3 trillion or 29.3% of total national investment for the period. This figure far exceeded the average trend over the past three years, which hovered around 23–24%.
On a year-on-year basis, the value of downstream investment grew 79.82%, whilst on a quarter-on-quarter basis it increased 1.04%.
Minister of Investment and Downstream Processing/Head of BKPM Rosan Roeslani stated that this increase marks a new direction in Indonesia's downstream investment landscape. He noted that downstream investment had previously tended to be concentrated in the nickel sector and its derivatives. However, copper is now beginning to show significant momentum, as are palm oil and bauxite.
"We can see that bauxite will become one of the sectors with quite rapid growth in downstream processing going forward," said Rosan at a press conference in Jakarta on Tuesday (29/4).
The mineral sector dominated with a contribution of Rp 97.60 trillion, with nickel as the primary contributor at Rp 47.82 trillion, followed by copper at Rp 17.70 trillion and bauxite at Rp 12.84 trillion.
Meanwhile, the plantation and forestry sector contributed Rp 31.13 trillion, with palm oil and timber logs as the main contributors at Rp 15.26 trillion and Rp 11.79 trillion respectively.
Rosan also emphasised the importance of increasing value added from strategic commodities such as palm oil. "Palm oil has been running for a long time and we will try to push further on derivative products so that the value added can be captured and more significant job creation can be achieved," he said.
He also highlighted the considerable potential of the bauxite sector, which has not yet developed rapidly. According to him, bauxite will become one of the engines of downstream growth going forward.
Beyond land-based sectors, downstream development in the maritime sector is also receiving attention. Investment in the fisheries and maritime sector was recorded at Rp 1.03 trillion, covering commodities such as seaweed, tilapia, tuna, and blue swimming crab.
"We will push the development of downstream processing in the fisheries and maritime sector so that the commodities will become more varied and more numerous," he said.
Meanwhile, downstream investment in the oil and gas sector reached Rp 6.55 trillion, comprising Rp 3.13 trillion from crude oil and Rp 3.42 trillion from natural gas.
On a year-on-year basis, the value of downstream investment grew 79.82%, whilst on a quarter-on-quarter basis it increased 1.04%.
Minister of Investment and Downstream Processing/Head of BKPM Rosan Roeslani stated that this increase marks a new direction in Indonesia's downstream investment landscape. He noted that downstream investment had previously tended to be concentrated in the nickel sector and its derivatives. However, copper is now beginning to show significant momentum, as are palm oil and bauxite.
"We can see that bauxite will become one of the sectors with quite rapid growth in downstream processing going forward," said Rosan at a press conference in Jakarta on Tuesday (29/4).
The mineral sector dominated with a contribution of Rp 97.60 trillion, with nickel as the primary contributor at Rp 47.82 trillion, followed by copper at Rp 17.70 trillion and bauxite at Rp 12.84 trillion.
Meanwhile, the plantation and forestry sector contributed Rp 31.13 trillion, with palm oil and timber logs as the main contributors at Rp 15.26 trillion and Rp 11.79 trillion respectively.
Rosan also emphasised the importance of increasing value added from strategic commodities such as palm oil. "Palm oil has been running for a long time and we will try to push further on derivative products so that the value added can be captured and more significant job creation can be achieved," he said.
He also highlighted the considerable potential of the bauxite sector, which has not yet developed rapidly. According to him, bauxite will become one of the engines of downstream growth going forward.
Beyond land-based sectors, downstream development in the maritime sector is also receiving attention. Investment in the fisheries and maritime sector was recorded at Rp 1.03 trillion, covering commodities such as seaweed, tilapia, tuna, and blue swimming crab.
"We will push the development of downstream processing in the fisheries and maritime sector so that the commodities will become more varied and more numerous," he said.
Meanwhile, downstream investment in the oil and gas sector reached Rp 6.55 trillion, comprising Rp 3.13 trillion from crude oil and Rp 3.42 trillion from natural gas.