Downstreaming Potential in Non-Mining Sectors Could Spur Economic Growth
The Investment Coordinating Board (BKPM) has outlined the significant potential of downstreaming not only in the mining sector but also in non-mining sectors such as agriculture and fisheries. This was revealed by Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, at the CNBC Indonesia Economic Update 2026.
According to Todotua, downstreaming is an effort to gain added value from domestic commodities to drive economic growth, create jobs, and enhance knowledge transfer. He stressed that natural resources like minerals, coal, oil, and gas will eventually be depleted, making it necessary to harness the potential of the plantation and forestry sectors.
“We all understand that our natural resources in minerals, coal, oil, and gas will one day run out. However, our natural resources also have enormous potential in the agriculture, plantation, and forestry sectors,” Todotua explained.
In the agricultural sector, Indonesia has great potential from palm oil, which can be used as a source of renewable energy. Todotua explained that Indonesia is preparing to adopt the B40 concept and even move towards B50, leveraging the strength of crude palm oil (CPO) and its utilisation.
The government is also promoting the use of biofuel or ethanol, which Todotua said can be derived from sugarcane, corn, cassava, and sorghum. The government is targeting the implementation of E20 fuel, or bioethanol, by 2028. As part of this effort, an ethanol plant will soon be built in Lampung with a capacity of 240,000 kilolitres.
“Why Lampung? Because Lampung has everything. Lampung has all the resources. It is the largest producer of cassava and corn, right?” he said.
Furthermore, the downstreaming agenda also includes the fisheries sector. The government plans to promote the shipbuilding industry to maximise the potential of fish in Indonesian waters. Government support includes providing 1,500 fishing vessels through the Kampung Nelayan (Fishermen’s Village) programme.
“Kampung Nelayan. These are our programmes to upscale, you know, the potential. We must start looking at this,” Todotua asserted.