Downstream and Investment, Key to Sustainable Economic Growth
Jakarta – Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia emphasized that downstreaming is the main key in encouraging national investment and creating jobs.
According to him, Indonesia’s economic growth is highly dependent on investment which currently contributes around 30% to Gross Domestic Product (GDP).
“Our economy cannot only depend on consumption. To create jobs, we must encourage investment. And that investment must be based on industrialization and downstreaming,” said Bahlil.
He gave an example of the success of nickel downstreaming which has significantly increased Indonesia’s export value. Before downstreaming, Indonesia only exported raw materials, but now nickel exports have reached 40 billion USD.
“This proves that downstreaming is able to change our economic structure,” he added.
He also emphasized the importance of coordination between ministries so that there is no overlapping policy.
“No country has succeeded in industrializing without the active involvement of the state. Therefore, we must ensure that there is clear governance so that downstreaming runs effectively,” he said.
On the other hand, he also highlighted the inequality in the distribution of benefits from downstreaming. According to him, the benefits of this industry are still enjoyed more by foreign investors than by local people.
“Downstreaming must be fair. Don’t let it only be enjoyed by foreign investors while our people are just spectators,” he said.
Member of Commission XII of the Indonesian House of Representatives, Christiany Eugenia Tetty Paruntu emphasized that downstreaming in the era of President Prabowo Subianto’s administration must be of high quality and oriented towards increasing employment opportunities and an inclusive economy.
“This means downstreaming that opens up more employment opportunities, is inclusive, equitable, has a social impact, and is sustainable,” said Tetty.
He added that downstreaming is an important strategy to achieve national energy and food security. Indonesia, according to him, has great potential in the energy and maritime sectors that need to be utilized optimally to develop a green and blue economy.
“In this green economy, we know, it is very low carbon, and it is good for the environment. While in the blue economy, we have vast oceans and a lot of human resources of the workforce,” he said.
Tetty emphasized that quality downstreaming must be supported by central and regional government regulations in order to create a good economic ecosystem.
“With quality downstreaming, it will create broad, equitable, socially impactful, and sustainable employment opportunities,” he said.
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