Government Prioritises 28 Strategic Commodities for Downstream Processing with US$618 Billion Investment Potential
Jakarta — Downstream processing remains the Indonesian Government's key strategy for attracting investment. According to Deputy Minister of Investment and Downstream Processing/Deputy Head of BKPM, Todotua Pasaribu, there are 28 strategic commodities being prioritised under the downstream processing programme. These commodities span the minerals, coal, oil and gas, forestry, fisheries and other clusters.
Todotua stated that the investment potential for these commodities reaches US$618 billion, equivalent to Rp10,382 trillion. "We already have a target figure of US$618 billion for investment realisation in the downstream processing sector, backed by those 28 commodities. The 28 commodities fall within the minerals cluster, coal, oil and gas, forestry cluster, fisheries cluster, and several other clusters including tourism, IT, technology and telecommunications," he said during the detikcom Indonesia Investment Talk Series on Monday (28/4/2025).
Although 28 commodities have been prioritised, Todotua noted that other commodities are not being neglected. The reason only 28 have been prioritised is due to the substantial reserves available for development. "It's not that we're not prioritising other commodities. But there are 28 strategic commodities that we are prioritising. Why? Because these 28 commodities are ones where we see large resource reserves. So this is indeed necessary, because we also need to focus on managing downstream processing," he explained.
The investment breakdown comprises US$498.4 billion for minerals and coal, covering commodities such as coal, nickel, tin, copper, iron and steel, bauxite, manganese and others. Investment in the oil and gas sector amounts to US$68.3 billion, followed by the plantations, maritime, fisheries and forestry sector at US$51.3 billion.
The investment is also projected to create 3 million jobs.
The Government is clearly serious about pursuing downstream processing projects to generate added value for the nation. This commitment is evident from the change in nomenclature of the Ministry of Investment, which has now become the Ministry of Investment and Downstream Processing/BKPM. "Previously, our ministry was simply the Ministry of Investment and the Investment Coordinating Board. But under this administration, our ministry is now called the Ministry of Investment and Downstream Processing and the Investment Coordinating Board. What does that mean? It means there is a clear message from the government that we intend to enter the downstream processing sector ourselves," he concluded.
Todotua stated that the investment potential for these commodities reaches US$618 billion, equivalent to Rp10,382 trillion. "We already have a target figure of US$618 billion for investment realisation in the downstream processing sector, backed by those 28 commodities. The 28 commodities fall within the minerals cluster, coal, oil and gas, forestry cluster, fisheries cluster, and several other clusters including tourism, IT, technology and telecommunications," he said during the detikcom Indonesia Investment Talk Series on Monday (28/4/2025).
Although 28 commodities have been prioritised, Todotua noted that other commodities are not being neglected. The reason only 28 have been prioritised is due to the substantial reserves available for development. "It's not that we're not prioritising other commodities. But there are 28 strategic commodities that we are prioritising. Why? Because these 28 commodities are ones where we see large resource reserves. So this is indeed necessary, because we also need to focus on managing downstream processing," he explained.
The investment breakdown comprises US$498.4 billion for minerals and coal, covering commodities such as coal, nickel, tin, copper, iron and steel, bauxite, manganese and others. Investment in the oil and gas sector amounts to US$68.3 billion, followed by the plantations, maritime, fisheries and forestry sector at US$51.3 billion.
The investment is also projected to create 3 million jobs.
The Government is clearly serious about pursuing downstream processing projects to generate added value for the nation. This commitment is evident from the change in nomenclature of the Ministry of Investment, which has now become the Ministry of Investment and Downstream Processing/BKPM. "Previously, our ministry was simply the Ministry of Investment and the Investment Coordinating Board. But under this administration, our ministry is now called the Ministry of Investment and Downstream Processing and the Investment Coordinating Board. What does that mean? It means there is a clear message from the government that we intend to enter the downstream processing sector ourselves," he concluded.