Prabowo Prioritises Downstreaming in Investment Cooperation with the US

Jakarta (ANTARA) - President of the Republic of Indonesia Prabowo Subianto has affirmed that the government will continue to prioritise the industrial downstreaming programme as the primary condition in every investment cooperation with the United States (US). “Raw materials, we ask to be processed. If they want to mine and process here, that’s fine,” said President Prabowo, as quoted from the official statement of the Indonesian Government Communication Agency in Jakarta on Sunday. The President emphasised that openness to foreign capital must remain within the framework of national interests. Although there are discussions regarding tariff agreements with the US side, all investments must comply with the applicable natural resource management regulations in Indonesia. Regarding the management of critical minerals, the President highlighted the importance of applying international market prices. He stated that Indonesia does not close access for foreign parties to enter the mining sector, as long as they comply with the regulations set by the government. “Regarding critical minerals, I have said, we are open. But everything at market price. At economic price,” said the President. Furthermore, the President explained that the involvement of foreign parties in Indonesia’s extractive sector has been a long-standing practice. He gave the example of the operations of PT Freeport Indonesia, which has been running for decades in the country. According to the President, the company has now become one of the significant contributors to state revenue after following the existing regulations. The government grants operational permits with the condition of still providing added value to the national economy. “So if they want to follow (the rules), we allow them to mine in Freeport. It has been decades. Freeport now generates one of our largest revenues. We allow it,” he continued. Nevertheless, the government firmly prohibits the export of raw materials without undergoing processing in the country. The downstreaming principle is applied so that strategic commodities such as critical minerals can provide maximum economic value for the people. The President explained that critical minerals are commodities whose economic value must be felt by the nation. According to him, as long as investors pay according to international market prices, the government will provide access both to foreign and domestic business actors to manage them in order to ensure that Indonesia receives fair economic added value.