Minister: Downstreaming Strengthens Indonesia's Position in Global Supply Chain

Downstreaming projects are strengthening Indonesia’s position in the global supply chain, according to Minister of Investment and Downstreaming Rosan Roeslani. He stated that Vale’s downstreaming project sets a new standard in international collaboration aligned with national interests, building resource sovereignty, creating jobs, and generating high added value to support the Net Zero Emissions agenda. The development of downstreaming-based industrial areas is also part of the strategy to build a national electric vehicle ecosystem, which is expected to expand business opportunities for micro, small, and medium enterprises and boost local economic activity. One significant marker of downstreaming acceleration is the progress of PT Vale Indonesia’s High Pressure Acid Leaching facility in Morowali, Central Sulawesi, part of the Indonesia Growth Project with an investment value of approximately 2 billion US dollars. The project has entered a crucial phase following the arrival of main autoclave components and is targeted to achieve first mechanical completion by the end of 2026. Mining and energy observer Ferdy Hasiman noted that building HPAL facilities is now a strategic necessity for the nickel industry due to rising global demand for electric vehicle battery raw materials. He added that companies developing such processing facilities will have a higher competitive edge than those relying on raw material exports, and that the government, along with Danantara Indonesia, is accelerating the downstreaming agenda through strategic project investments to maintain Indonesia’s global competitiveness.