Downstreaming transforms industrial structure into higher value-added, says Industry Ministry

Director General of Resilience, Regionalisation and International Industrial Access at the Ministry of Industry, Tri Supondy, has 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 that produces goods with higher added value,” Tri said at the Indonesia Development Talks event held in Jakarta on Thursday. Tri welcomed the Industrial Development Report, which named Indonesia as one of the best practices in downstream-based industrial development, particularly in the critical mineral processing and electric vehicle industry sectors. The Industrial Development Report is a publication by the United Nations Industrial Development Organization that presents analysis of global industrialisation trends and provides policy recommendations to member states in navigating the changing 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 a national electric vehicle ecosystem. “The next challenge is to strengthen national industrial capabilities so that we can play a greater role in the global value chain,” Tri said. He added that Indonesia currently requires continuous strengthening of domestic capacity, including through improving the quality of human resources, mastering technology, developing innovation, enhancing manufacturing capabilities, and strengthening supporting industries. “This effort aims to ensure that Indonesia is not merely a production location, but is able to transform into a country that produces high value-added products,” he said. Regarding Indonesia’s needs, the Asian Development Bank stated it is ready to continue cooperating with Indonesia in industrial development to create inclusive and high value-added employment. “The ADB will continue to work with the Indonesian government to help realise this potential into inclusive and high value-added jobs for the Indonesian people,” said ADB Country Director for Indonesia Bobur Alimov.