Indonesian Political, Business & Finance News

Downstreaming Contributes 30% to Indonesia's Investment Realisation

| Source: CNBC Translated from Indonesian | Economy
Downstreaming Contributes 30% to Indonesia's Investment Realisation
Image: CNBC

The Ministry of Investment and Downstreaming/BKPM has revealed that the downstreaming sector made a significant contribution to the total national investment achievement. Currently, these natural resource processing projects account for around 30% of all investment realisation in Indonesia.

Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu explained that total investment realisation throughout the first semester of 2026 reached Rp 1,010.6 trillion, or 49.5% of this year’s target of Rp 2,041.3 trillion. Of this realisation, 29.7%, or Rp 300.1 trillion, was investment from domestic downstreaming projects. This figure shows a growth of 6.9% compared to the same period last year.

“In addition, the figure I mentioned earlier, we have been monitoring over the last two years, the contribution of downstreaming is quite significant. Of the existing investment realisation, currently downstreaming contributes approximately 30% of the investment realisation figure,” he said at the Mindialogue 2026 event in Jakarta.

The government is pushing for mineral commodities to no longer be released to the global market in raw material form. This step is taken to ensure that the entire processing is carried out domestically to provide a broader economic impact for the nation. “This means downstreaming, we have a commitment not to release our raw materials or mineral raw materials, and we encourage this to be processed in our country, so that it provides added values,” he added.

Based on his presentation, downstreaming investment realisation in the first semester of 2026 was dominated by the Mineral sector, which recorded a total figure of Rp 206.5 trillion. Within the mineral sector, nickel downstreaming was the main contributor with a value reaching Rp 71.0 trillion, followed by bauxite at Rp 53.8 trillion, copper at Rp 37.4 trillion, and iron and steel and silica sand which contributed Rp 30.2 trillion and Rp 5.9 trillion respectively.

Furthermore, the Plantation and Forestry sector took second place with a total investment of Rp 54.4 trillion, driven by palm oil commodities worth Rp 29.5 trillion and rubber at Rp 5.0 trillion. The Oil and Gas sector contributed through investments in petroleum processing of Rp 26.4 trillion and natural gas of Rp 9.0 trillion. Finally, the Fisheries and Marine sector completed the national downstreaming achievement with an investment value of Rp 3.8 trillion, covering the processing of commodities such as salt, various types of fish (tuna, skipjack, mackerel tuna), shrimp, and seaweed.

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