Palm Oil Downstreaming Still at 'Step 2', Minister Rosan Pushes for Further Development
The government has acknowledged that the downstreaming of palm oil is still in its early phases and requires further strengthening to generate higher value-added derivative products. Investment and Downstreaming Minister Rosan Perkasa Roeslani stated that the current progress in palm oil downstreaming has only reached the first or second step. “We still want to push the downstreaming or derivatives of palm oil and others, but not stop there, because the downstreaming we have done is perhaps still only at the first or second step,” Rosan said after reporting on Q2 2026 investment realisation to President Prabowo Subianto.
He explained that downstreaming efforts are not focused on a single commodity. The government is also developing other sectors with significant potential and competitive advantages. Besides palm oil, the national downstreaming roadmap includes bauxite, rubber, timber, and silica sand. Rosan noted that nickel downstreaming currently serves as a benchmark, as its industrial ecosystem is far more complete, spanning from upstream mining to the production of electric vehicle batteries and recycling facilities. “For nickel, we almost have the whole ecosystem related to EV batteries, from nickel ore, nickel sulphate, nickel matte, cathode, anode, to battery cells, battery packs, and even battery recycling,” he said.
This comprehensive nickel ecosystem is the model the government aims to replicate for other priority commodities. The downstreaming priorities are based on a national blueprint that considers Indonesia’s resource reserves and competitive advantages. In the second quarter of 2026, downstreaming investment realisation reached Rp152.7 trillion, a 5.7 per cent increase compared to the same period the previous year. This figure accounted for 29.8 per cent of total national investment, highlighting the significant role of the downstreaming sector. Bauxite has now overtaken nickel as the largest contributor to downstreaming investment during this period.