Downstream Processing Becomes Indonesia’s Main Investment Driver: The Evidence

Jakarta, CNBC Indonesia — The Indonesia Mining Institute (IMI) recorded Rp480 trillion in downstream-processing investment in Indonesia from January to September 2026. This is evidence that downstream processing has become a key driver of investment in the country.

Indonesia Mining Institute Chairman Irwandy Arif said the downstream-processing programme had successfully become a major driver of national investment. He said the mineral sector made the largest contribution to the investment total.

“Downstream processing has become a driver of national investment so far. That is a positive development. From January to September 2026, downstream-processing investment had reached Rp480 trillion,” Irwandy said at the Coffee Morning — Special: Two Years of Prabowo event, themed “Two Years of Prabowo: Downstream Processing Advances, Mining Industry Grows Stronger?”, as quoted on Friday (30 October 2026).

The mineral sector accounted for the largest share of downstream-processing investment, at Rp335 trillion. The figure was also supported by the inauguration of 19 downstream-processing projects by the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), as well as 11 private-sector projects, with a combined investment value of around Rp180 trillion.

“The mineral sector was the largest contributor, at Rp335 trillion. Danantara launched 19 downstream-processing projects, alongside 11 private-sector projects in the downstream sector, worth approximately Rp180 trillion, which have been inaugurated,” he explained.

The impact of downstream-processing investment is also reflected in a roughly 17% increase in the value of Indonesia’s nickel exports. Export value rose despite a fall in volume resulting from quota restrictions.

“The value of our nickel exports rose by around 17%, even though volumes fell because of quota restrictions,” he concluded.