Government Strengthens Mineral and Coal Downstream Processing Strategy to Boost National Industry
The government continues to strengthen its mineral and coal downstream processing strategy to increase added value and national industrial competitiveness. Director of Mineral and Coal Downstream Processing at the Ministry of Investment/BKPM, Rizwan Aryadi Ramdan, affirmed that the success of downstream processing depends heavily on the availability of processing facilities, stable energy supply, and cross-sectoral synergy.
"To support processing facilities and stable energy supply, we need to forge close collaboration among stakeholders. This includes support from the government, industry, and financial institutions," said Rizwan during a Fastmarkets panel discussion at the Dharmawangsa, Jakarta, on Thursday (10/4/2025).
According to him, downstream processing requires substantial investment capital. Therefore, the government is providing streamlined business licensing and facilitating financing through banks and financial institutions, including cooperation with the Indonesia Investment Authority (INA).
"We have been working with a sub-task force from INA to calculate and select potential projects that can be financed. This is important so that financing can be properly targeted," he said.
Beyond financing, strengthening human resource competencies is also a primary concern. He emphasised the need for synergy between industry and educational institutions to ensure workers possess relevant skills to support downstream industry needs.
"The downstream industry requires skilled workers. Therefore, cooperation with educational institutions is essential so that graduates are work-ready and aligned with market demands," he said.
Rizwan also stressed the importance of applying green mining principles and green industry practices to ensure environmental sustainability. "We need to adopt environmentally friendly approaches through sustainable processing concepts, land restoration, and carbon emission reduction at every industrial site," he said.
Furthermore, he underscored the importance of simplifying licensing and strengthening cross-ministerial coordination to provide legal certainty and ease for investors. "Indonesia continues to prove itself as a progressive investment regime. We have strengthened the risk-based Online Single Submission (OSS) licensing system by integrating more ministries into the system," he said.
As a demonstration of commitment, the government is also offering various incentives to attract investors. "We offer competitive investment incentive facilities such as tax holidays, tax allowances, and import duty exemptions for processing industries. In addition, there are 24 Special Economic Zones (SEZs) that also offer similar facilities," he concluded.
These measures are expected to accelerate investment realisation in the mineral and coal downstream processing sector, whilst driving sustainable and environmentally conscious industrial growth.
"To support processing facilities and stable energy supply, we need to forge close collaboration among stakeholders. This includes support from the government, industry, and financial institutions," said Rizwan during a Fastmarkets panel discussion at the Dharmawangsa, Jakarta, on Thursday (10/4/2025).
According to him, downstream processing requires substantial investment capital. Therefore, the government is providing streamlined business licensing and facilitating financing through banks and financial institutions, including cooperation with the Indonesia Investment Authority (INA).
"We have been working with a sub-task force from INA to calculate and select potential projects that can be financed. This is important so that financing can be properly targeted," he said.
Beyond financing, strengthening human resource competencies is also a primary concern. He emphasised the need for synergy between industry and educational institutions to ensure workers possess relevant skills to support downstream industry needs.
"The downstream industry requires skilled workers. Therefore, cooperation with educational institutions is essential so that graduates are work-ready and aligned with market demands," he said.
Rizwan also stressed the importance of applying green mining principles and green industry practices to ensure environmental sustainability. "We need to adopt environmentally friendly approaches through sustainable processing concepts, land restoration, and carbon emission reduction at every industrial site," he said.
Furthermore, he underscored the importance of simplifying licensing and strengthening cross-ministerial coordination to provide legal certainty and ease for investors. "Indonesia continues to prove itself as a progressive investment regime. We have strengthened the risk-based Online Single Submission (OSS) licensing system by integrating more ministries into the system," he said.
As a demonstration of commitment, the government is also offering various incentives to attract investors. "We offer competitive investment incentive facilities such as tax holidays, tax allowances, and import duty exemptions for processing industries. In addition, there are 24 Special Economic Zones (SEZs) that also offer similar facilities," he concluded.
These measures are expected to accelerate investment realisation in the mineral and coal downstream processing sector, whilst driving sustainable and environmentally conscious industrial growth.