DPR Member: Successful Downstreaming Requires Sustainable Investment

Member of Commission XII of the Indonesian House of Representatives (DPR RI), Cek Endra, has expressed appreciation for the affirmation by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia that the gross split scheme only applies to the oil and gas sector and will not be implemented in the mineral and coal (minerba) sector. He believes this certainty sends a positive signal to the business community whilst strengthening investor confidence in the national mining sector. Cek Endra considers regulatory certainty a critical factor in encouraging long-term investment in the minerba sector, which requires large capital and has a lengthy business cycle. Therefore, the government’s affirmation that there will be no changes to the minerba management regime is a proper step to maintain stability in the national investment climate. “Legal certainty and business certainty are essential foundations for maintaining the attractiveness of national investment. The government’s affirmation that minerba regulations continue to refer to the current applicable rules provides certainty for business actors to continue their investment activities,” said Cek Endra in a written statement on Wednesday, 10 June 2026. According to him, this certainty is good news for mineral and coal producing regions that have been engines of the national economy, such as Jambi, South Sumatra, East Kalimantan, South Kalimantan, Central Kalimantan, Central Sulawesi, and Papua. Ongoing investment activities in these regions not only impact increased production and state revenue, but also open up employment opportunities, drive local businesses, and foster regional economic growth. Cek Endra added that the minerba sector holds a strategic position in supporting national economic growth targets through increased exports, state revenue, and the development of downstream industries based on natural resources. Therefore, the success of the downstreaming programme heavily depends on certainty of raw material supply and sustainability of investment in the upstream sector. “Successful downstreaming requires sustainable investment support. For this reason, policy consistency is important so that business actors have the confidence to continue investing, develop their businesses, and create greater added value for the national economy,” he stated. He also assesses that policy stability will become increasingly important amidst rising global demand for various strategic mineral commodities that Indonesia possesses. With consistent regulatory support, Indonesia has a significant opportunity to strengthen its position as a centre for mineral-based industrial development whilst enhancing national competitiveness.