Foreign Investment Must Support Indonesia's Downstream Mandate
Foreign Investment Must Support Indonesia’s Downstream Mandate
24 Mar 2026 13:20 WIB
Voice of Indonesia
RRI.CO.ID, Jakarta - President Prabowo Subianto has reaffirmed that foreign investment, particularly from the United States, must align with Indonesia’s national industrial downstreaming agenda. The President emphasized that while Indonesia remains open to international capital, all foreign entities must comply with national laws requiring the domestic processing of raw mineral resources.
Speaking during an interview cited by the Government Communications Agency (Bakom) on Saturday, March 21, 2026, the President noted that downstreaming is a non-negotiable requirement to boost state revenue from the natural resource sector.
He clarified that Indonesia’s critical minerals are available to global partners, provided they adhere to international market valuations and local processing regulations.
“Regarding critical minerals, I have said we are open. But everything at market price. At economic price,” the President said.
He emphasized that by utilizing international market mechanisms, Indonesia ensures it captures the maximum economic value from its commodities, regardless of whether the operator is a domestic or foreign firm. “The important thing is we provide access,” he added.
The President pointed to PT Freeport Indonesia as a long-standing example of how foreign investment can successfully integrate into the national economy. Having operated for decades under official agreements, Freeport currently stands as one of the largest contributors to Indonesia’s state revenue.
“So if they want to follow the rules, we allow them to mine at Freeport. It’s been how many decades. Freeport now produces one of our largest revenues. We allow it,” Prabowo remarked, suggesting that compliance with Indonesian law is the key to longevity for foreign firms.
Indonesia continues to enforce a strict ban on the export of raw minerals, requiring all natural commodities to undergo processing within domestic industrial zones before being shipped abroad. This policy aims to transform Indonesia from a raw material exporter into an industrial powerhouse.
“Raw materials, we ask for processing. If they want to mine and process here, then certainly,” the President asserted.
By ensuring that critical minerals are processed locally at fair market prices, the government aims to build national economic independence while maintaining strong international trade relations. (Naura Sofia/Bambang MBKA)