Government Maps 28 Commodities for Downstreaming Strategy through 2045
The government is preparing a downstream roadmap covering 28 strategic commodities through 2040-2045. From this number, the government has filtered 15 commodities to serve as the primary focus within the National Medium-Term Development Plan (RPJMN).
The Deputy Minister of Investment and Downstreaming, as well as Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, stated that the government is preparing three strategies for downstream-related investment: planning, execution, and strategies for licensing and the provision of incentives.
“First, we are addressing planning. Then, we are looking at the execution side of this planning. Thirdly, in our capacity as a government regulator, we will also look at strategies regarding licensing and incentives,” Todotua said during the 100 Indonesian Economists Symposium in Jakarta on Thursday (3/9/2026).
Todotua noted that the Ministry of Investment and Downstreaming has drafted the downstream roadmap by considering the diversity of Indonesia’s natural resources. The commodities included in the map cover oil and gas, minerals, maritime, agriculture, plantations, and several other sectors.
“We are creating this roadmap based on the strength of existing reserves. There are 28 commodities within our broad programme that we are preparing up to 2040-2045,” Todotua added.
According to Todotua, the government has calculated the potential investment that can be developed from these 28 commodities, with the total potential investment for downstreaming estimated to reach approximately US$618 billion.
To centralise the programme’s implementation within the RPJMN, the government has narrowed these 28 commodities down to 15.
“To increase focus within the RPJMN, we have squeezed these 28 down to 15 commodities so that we can be more concentrated on those 15,” Todotua explained.
He explained that the mapping also includes the locations of natural resources and the potential for industrial development across various regions of Indonesia. The government uses this data to determine areas with potential as locations for investment and downstream industrial development.
“We understand the distribution and where the potential lies, which will serve as the design planning for our downstreaming concept. This planning is essential so that we understand the strategy,” he continued.
Todotua assessed that downstreaming is vital not only for increasing added value but also for mitigating and controlling costs. He noted that as a country with a large population, Indonesia has an interest in maintaining cost efficiency while driving economic growth.
“We view this downstreaming as a way to mitigate and control costs,” Toditoaua continued.
He stated that, currently, much of Indonesia’s natural resources are still processed abroad, meaning the added value is created in other countries. Todotua believes this condition makes Indonesia dependent on imports and prevents full control over costs.
“We understand that many of our natural resources have been processed abroad, ultimately making us dependent on imports and unable to control costs,” he said.
Todotua stated that the government aims to build an integrated supply chain from upstream to downstream within the country. He cited the development of the nickel-based battery industry as an example, which can encompass all stages, from ore processing to the final product and recycling.
“In this ecosystem, we are encouraging the entire supply chain to occur within our country so that we are no longer demanding imports,” Todotua revealed.
According to him, developing a domestic supply chain will not only reduce import dependency but also enhance Indonesia’s export capabilities. Products manufactured domestically are expected to become increasingly competitive, thereby increasing export value.
“The government also wants to ensure that downstreaming proceeds in tandem with the development of a green economy,” said Todotua.
He provided the development of solar panels as an example, noting that most of the materials required to manufacture solar panels are actually available in Indonesia.