The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) reported that the downstream sector accounted for approximately 30% of Indonesia’s total investment realization, making it a key driver of national investment growth supported by both domestic and international investors. Minister of Investment and Downstreaming and Head of BKPM Rosan Roeslani emphasized that downstreaming is essential to developing an integrated national industrial ecosystem spanning mining, processing, manufacturing, clean energy, and technology to generate added value and create jobs.
“The downstream industry now contributes around 30% of our total investment and continues to grow strongly, driven by domestic and international investors. Capital is flowing in,” Rosan said at the Indonesia International Sustainability Forum (IISF) 2026 in Jakarta on Tuesday (October 6, 2026).
Indonesia’s strong downstream investment performance is reflected in national investment realization, which exceeded US$120 billion in 2025, representing annual growth of 12.7% and generating employment for 2.7 million people. In the first half of 2026, investment realization reached US$61 billion, an increase of 7.2% year-on-year, and created 1.45 million jobs.
Rosan explained that downstreaming encompasses several areas, including electrification, which covers the value chain from mining and raw material processing to battery production and electric vehicle manufacturing. Indonesia has made progress in this area through battery cell manufacturing facilities involving Hyundai, CATL, and Indonesia Battery Corporation (IBC). According to Rosan, one in six new cars sold in Indonesia is now a battery-powered electric vehicle.
“First, electrification. From mining to battery cells to electric cars. Indonesia is now producing battery cells in two large factories with Hyundai and also with CATL and IBC, our state-owned companies, which began operations in stages in August. Now, one in six new cars sold in Indonesia is fully electric, and more than two-thirds of them are assembled here in Indonesia,” he said.
Separately, Deputy Minister of Investment and Downstreaming Todotua Pasaribu reported that investment realization in the first half of 2026 reached IDR 1,010.6 trillion, equivalent to 49.5% of the annual target of IDR 2,041.3 trillion. Of this amount, investment in downstreaming projects reached IDR 300.1 trillion, accounting for 29.7% of total investment realization and representing a 6.9% increase compared with the same period in the previous year.
According to Pasaribu’s presentation, the minerals sector dominated downstream investment in the first half of 2026, attracting IDR 206.5 trillion. Nickel downstreaming contributed IDR 71.0 trillion, followed by bauxite at IDR 53.8 trillion, copper at IDR 37.4 trillion, iron and steel at IDR 30.2 trillion, and silica sand at IDR 5.9 trillion. The plantation and forestry sector ranked second, with IDR 54.4 trillion in investment, including IDR 29.5 trillion in palm oil and IDR 5.0 trillion in rubber.
Meanwhile, the oil and gas sector attracted IDR 26.4 trillion in petroleum processing investment and IDR 9.0 trillion in natural gas investment. The fisheries and maritime affairs sector recorded IDR 3.8 trillion in downstream investment, covering the processing of commodities such as salt, tuna, skipjack, mackerel, shrimp, and seaweed.
October 6, 2026, CNBC Indonesia(https://www.cnbcindonesia.com/news/20261006130739-4-773745/jadi-tulang-punggung-hilirisasi-sumbang-30-total-investasi-di-ri)