Economists assess that Phase II downstreaming could drive industrial transformation
Jakarta (ANTARA) - INDEF Programme Director Esther Sri Astuti believes that the continuation of the national downstreaming project Phase II has the potential to drive industrial transformation based on value-added natural resources.
In addition, national downstreaming Phase II can significantly increase export values and boost state revenues. She cited examples such as the processing of nickel, palm oil, and copper.
“This could be a good opportunity if there is an increase in productivity in the sectors that form the important foundation for the success of downstreaming,” Esther said in Jakarta on Monday.
She conveyed this after President Prabowo Subianto, together with Danantara CEO Rosan Roeslani, inaugurated the start of 13 national downstreaming Phase II projects worth Rp116 trillion at Refinery Unit IV Cilacap on Wednesday (29/4).
“Thus, downstreaming is not only an industrialisation process, but also a journey towards a more advanced, adaptive, and sustainable economy,” she explained.
Esther is also optimistic that national downstreaming Phase II will have social impacts.
“The creation of industrial zones in the regions will certainly open up new job opportunities, increase the income of farmers/miners, and improve the welfare of local communities,” she said.
In addition, there needs to be a plan if better, more efficient technology is available that is more beneficial for the people, so that every decision is truly based on objective calculations and provides optimal impact.
Separately, Director of Programmes and Policy at the Center for Policy Studies Prasasti Piter Abdullah views downstreaming as a strategic step to increase the value added of commodities that have previously been exported in raw form.
He cited coconuts that are often sent directly abroad without further processing, which have limited economic value.
Piter sees the acceleration of the downstreaming programme implementation from the initial phase to subsequent phases as a positive signal.
“This is quite aggressive, because once again, downstreaming is a long process, not instant,” he said.
Piter also assessed that the government’s consistency in implementing those stages demonstrates seriousness in ensuring the programme delivers significant impacts, from increasing state revenues to creating jobs.