Downstreaming transforms industrial structure into higher value-added, says Industry Ministry
Jakarta (ANTARA) - Director General of Industrial Resilience, Regional and International Industrial Access (KPAII) at the Ministry of Industry, Tri Supondy, stated that Indonesia’s downstreaming policy is part of a strategy to transform the industrial structure into one with higher added value.
“Indonesia’s downstreaming policy is part of a strategy to transform the national industrial structure from one dependent on raw material exports into an industry producing goods with higher added value,” said Tri at the Indonesia Development Talks event held in Jakarta on Thursday.
Tri welcomed the Industrial Development Report (IDR), which names Indonesia as one of the best practices in downstream-based industrial development, particularly in the critical mineral processing sector and the electric vehicle industry.
The Industrial Development Report (IDR) is a publication of the United Nations Industrial Development Organization (UNIDO) presenting analysis of global industrialisation trends whilst providing policy recommendations to member states in facing changes in the global industrial landscape.
According to Tri, the recognition from UNIDO reflects Indonesia’s initiatives in driving economic transformation through increasing the added value of natural resources, developing the manufacturing industry, and building the national electric vehicle ecosystem.
“The next challenge is to strengthen the capabilities of the national industry so that it can play a greater role in the global value chain,” said Tri.
Therefore, he stated that Indonesia now needs continuous strengthening of domestic capacity, including through improving the quality of human resources, mastering technology, developing innovation, enhancing manufacturing capabilities, and strengthening supporting industries.
“These efforts aim to ensure that Indonesia does not merely become a production location, but is able to transform into a country producing high value-added goods,” he said.
Regarding Indonesia’s needs, the Asian Development Bank (ADB) stated its readiness to continue working with Indonesia on industrial development to create inclusive and high value-added jobs.
“The ADB will continue to work with the Indonesian government to help realise that potential into inclusive and high value-added employment for the Indonesian people,” said ADB Country Director for Indonesia, Bobur Alimov.