Prabowo Mandates Downstream Processing for All Foreign Investment
Prabowo Mandates Downstream Processing for All Foreign Investment
Jakarta. President Prabowo Subianto is tightening Indonesia’s investment rules, requiring foreign investors to commit to downstream processing as a non-negotiable condition for entering the country, signaling a firmer push to end raw commodity exports and accelerate industrialization.
The policy comes as Indonesia’s economic engagement with the United States draws global attention, with Jakarta making clear that openness to foreign capital will now be tied to tangible contributions to domestic industry.
The government said it remains open to investment “as much as possible,” but only for those willing to build processing facilities onshore. The move is aimed at boosting the value of Indonesia’s natural resources and reducing reliance on raw material exports.
“Raw materials, we want them processed. If they are willing, mining and processing must both be done here,” Prabowo said in a discussion titled Presiden Prabowo Menjawab (President Prabowo Answers) uploaded on his official YouTube channel.
He stressed that incoming investment must deliver real impact on domestic industrial capacity, particularly in natural resource sectors, where companies will now be required to integrate processing into their production chains in Indonesia.
At the same time, the government reaffirmed its openness to foreign investors, as long as they comply with national regulations and align with state interests. All resource management activities, Prabowo said, must follow Indonesian rules.
On critical minerals, the president emphasized a market-based and transparent pricing approach.
“Regarding critical minerals, I have said we are open. Everything follows market prices and economic pricing,” he said.
Prabowo also acknowledged the long-standing role of foreign players in Indonesia’s mining sector, citing Freeport Indonesia as a major contributor to state revenue.
“If they follow the rules, we allow it. Like Freeport, which has operated for decades and is one of the largest contributors to state income,” he added.
Despite that openness, the government remains firm on banning raw material exports without processing, positioning downstreaming as central to strengthening Indonesia’s industrial structure, increasing commodity value, and improving global competitiveness.
Prabowo underscored that critical minerals are strategic national assets that must be managed optimally to maximize economic benefits, while assuring that Indonesia will continue to welcome compliant investors under international pricing mechanisms to attract higher-quality investment and speed up industrial transformation.
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