Indonesian Political, Business & Finance News

Mineral Industry Urged to Strengthen Upstream-to-Downstream Downstream Processing Across the Value Chain

| Source: VIVA Translated from Indonesian | Economy

VIVA – Efforts to strengthen the downstream processing of national mineral and coal resources are being supported through integrated management of natural resources from upstream to downstream. This approach is deemed important to generate added value for the industry while broadening economic and social benefits for the community.

Corporate Secretary of the holding company MIND ID, Pria Utama, said the integration of various downstream initiatives is a key factor so that mineral resource management does not stop at mining activities alone.

‘This integration is important so that the management of mineral resources does not stop at mining activities, but is capable of creating greater industrial value for the national economy,’ he said in a written statement, quoted on Thursday 5 March 2026.

He explained that in the upstream sector, good mining practices are applied from the pre-mining stage, the mining process, to post-mining. The approach is undertaken so that operational activities align with environmental preservation measures and biodiversity protection in the surrounding working area.

According to him, ecosystem protection is an important part of sustainable natural resource management.

In downstream, several strategic projects are also being developed to strengthen the national mineral industry’s value chain. Among them are the construction of a Module & Pack Plant facility and a Cell Plant Indonesia Battery Corporation in Karawang, which form part of the development of the electric vehicle battery ecosystem.

Additionally, there is also the planned development of facilities for processing and refining bauxite–alumina–aluminium in Mempawah, West Kalimantan, and the development of coal logistics infrastructure along the Tanjung Enim–Kramasan corridor.

Strengthening downstream is viewed as in line with national investment trends. In 2025, the downstream sector accounted for around Rp584.1 trillion or 30.2 percent of total national investment realization.

This figure indicates that the development of natural resources-based industry is one of the key drivers in Indonesia’s economic transformation.

In addition to increasing the industry’s added value, downstream development is also seen to have other impacts, such as absorption of local workers, increased regional revenue, and infrastructure development in operational areas.

Several programmes to empower micro and small enterprises (UMK), improve access to health services, and strengthen public education are also being implemented so that industrial growth can proceed inclusively.

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