Indonesian Political, Business & Finance News

Realisation of Downstreaming Projects Proves Development is Not Stagnant

| Source: DETIK Translated from Indonesian | Economy
Realisation of Downstreaming Projects Proves Development is Not Stagnant
Image: DETIK

For the common good, all elements of the nation are urged to continue safeguarding and nurturing the consistency of the sustainable national development process. Despite facing the reality of increasingly sharp societal polarisation or divisions in recent times, all communities should not forget to always focus and care about the urgency of sustainable national development. This is because, in addition to the challenges of improving the quality of democracy and law enforcement, another equally important issue to continually address is preventing stagnation in development amid various limitations due to budget deficits, declining state revenues, foreign debt burdens, and rising unemployment figures. Not to mention the potential pressures on production costs from external factors, such as exchange rate fluctuations and energy price volatility. Fluctuating production costs affect business performance or productivity, including distribution expenses. When production and distribution costs rise, the impact is not only on higher prices for goods and services but also on employment security. In the current Indonesian context, when prices for goods and services increase due to more expensive production costs, market demand will weaken further, especially amid the current decline in consumer purchasing power. Weak purchasing power is due to rising unemployment. Amid such tendencies, one option is to reduce production volumes, with the consequence of cutting jobs or laying off workers (PHK). Indeed, as an excess of external and internal chaos factors, the current dynamics of life cause almost all communities to feel uncomfortable. Geopolitical tensions in the Middle East region continue to present various problems, including uncertain energy price trends and currency exchange rate fluctuations. The global community is facing difficult times. Therefore, when President Prabowo Subianto officiated the commencement of 13 national downstreaming projects in Phase II valued at Rp 116 trillion on 29 April 2026 in Cilacap, Central Java, the inauguration not only reflects hope but also signals that the lifeline of national development is still beating and continuing. Moreover, the realisation of all these projects represents a leap towards modernising the national economy. These projects will strengthen the national industrial ecosystem because they cover various sectors, such as energy, minerals, and agriculture. All of this is a continuation of Phase I of the downstreaming projects, which were inaugurated at the beginning of 2026, namely six strategic projects in the energy, minerals, and food sectors valued at Rp 118 trillion. Phase I of the downstreaming projects focuses on economic transformation and reducing reliance on imports. Some Phase I downstreaming projects are projected to be completed in the 2027-2028 period. Indeed, the current national development agenda is marked by the government’s efforts to accelerate downstreaming of various strategic projects in the energy, minerals, and agriculture sectors. As is known, the Government targets a total of 30 downstreaming projects with an investment value of Rp 239 trillion to be developed in stages. Through the downstreaming process, raw materials will be processed and refined domestically into high-value-added products. These dozen projects are spread across various regions: Java, Sumatra, Kalimantan, Sulawesi, Papua, and Maluku. The realisation of Phases I-II downstreaming projects serves as proof that national development is not stagnant amid escalating uncertainties leading towards changes in the global order. Of course, questions will arise about what benefits there are, and when the public can enjoy the added value from these dozen downstreaming projects worth hundreds of trillions. Primarily regarding the absorption capacity or the number of workers needed for these dozen projects, including worker qualifications. These questions will be answered if all communities care and pay extra attention to the realisation of these projects. Working-age youth must be willing and brave to ask the government, and conversely, relevant officials in the mentioned projects must be open to dialogue with the public, especially the workforce. It would be ideal if the realisation of these dozen downstreaming projects is quickly followed by announcements about the number of worker needs as an invitation to working-age youth. Considering that these dozen projects are spread across many regions, announcing the number of new worker requirements for these dozen downstreaming projects will certainly spark interest among working-age youth. And, far more important than the announcement of the mentioned job vacancies is the message to all communities that the government is focused on productive activities by continuing to realise downstreaming projects. Conversely, all communities are given proof that the consistency of sustainable national development remains intact. The theme of consistency in sustainable national development should also encourage all regional governments (Pemda) to be more creative and recognise the potentials and natural wealth of their respective regions. The creativity of all Pemda is linked to or based on the central government’s plan, namely the target of 30 downstreaming projects with an investment value of Rp 239 trillion to be developed in stages. This plan or target indirectly provides opportunities for all Pemda to offer their respective regional natural wealth that has the potential to be included in downstreaming projects. It is time for regions to be proactive in maximising their regional potentials for the welfare of local communities.

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