Government Prepares Downstreaming for 28 Commodities, Investment to Reach USD618 Billion
The government is targeting an investment potential of around USD618 billion from the downstream development of 28 commodities through to 2040–2045.
The Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, stated that the agency has developed a downstream roadmap over recent years to optimise the potential of national natural resources. According to him, Indonesia possesses a relatively complete diversification of natural resources, spanning oil and gas, minerals, the maritime sector, agriculture, and plantations.
Todotua noted that several of Indonesia’s commodities hold positions as the world’s largest, second-largest, or top five to ten producers. This condition serves as one of the government’s primary bases for drafting the downstream roadmap.
“Therefore, we are creating this roadmap based on existing reserve strengths. There are 28 commodities included in the grand plan of our programme up to 2040–2045 that we are preparing,” he said.
Todotua explained that the roadmap does not merely map commodities in terms of raw materials, but also examines the potential for developing industrial trees and their derivatives so they can become supporting products or consumer goods.
From the development of these 28 commodities, the government estimates the potential investment requirement to reach approximately USD618 billion. “In consolidating this, we see a total of around USD618 billion if we push investment in the downstream sector based on the potential of these 28 commodities,” said Todotua.
Although the main roadmap covers 28 commodities, the government is narrowing its development focus to increase implementation effectiveness within the Medium-Term Development Plan (RPJM). Todotua stated that from the 28 commodities, the government has narrowed the focus down to 15 priority commodities.
“Furthermore, to be even more focused within the RPJM, we have squeezed these 28 down to 15 commodities so that we can concentrate more intensely on those 15 commodities,” he concluded.