Category: Economy

The World Bank estimates that Indonesia’s economic growth will grow by 4.7% this year. This projection was released in the Regional Economic Update 2025 report, today, Friday (4/25/2025). This projection for Indonesia is lower than the projection at the beginning of this year, which was 5.1%. This projection is based on the uncertain global situation which has hampered investment and consumption in the East Asia and Pacific region. In addition, trade restrictions will also affect the economic growth of Indonesia and East Asian countries.

“Trade restrictions are expected to impact the level of East Asia and Pacific exports, while slowing global growth is likely to further reduce external demand,” wrote the World Bank.

The World Bank’s projection is the same as the projections of BI and the International Monetary Fund (IMF). Last Tuesday (22/4/2025), the IMF estimated that Indonesia’s economic growth would reach 4.7% in 2025. The IMF cut Indonesia’s economic growth quite sharply to 4.7% in 2025 and 2026. This projection is much lower than the forecast in January 2025. At that time, the IMF projected that Indonesia’s economy would grow by 5.1%. This projection reduction is similar to the global economic slowdown due to the high trade tariff war, which was first implemented by US President Donald Trump against its main trading partner countries, and China responded with high reciprocal tariffs.

“If it continues, the sudden increase in tariffs and the uncertainty that accompanies it will slow global growth significantly,” said IMF Chief Economist Pierre-Olivier Gourinchas at a press conference on Tuesday night (22/4/2025) Indonesian time.

In line with the IMF, Bank Indonesia (BI) estimates that Indonesia’s economic growth has the potential to weaken this year, due to the tariff war between the main trading partners of the United States and China. BI Governor Perry Warjiyo said that the trade war that hampers international trade activities and investment will cause the economy to move in the lower range of the midpoint of 4.7%-5.5%.

“Slightly below the midpoint of the 4.7%-5.5% range is influenced by US tariffs that reduce Indonesian exports to the US and a decrease in export demand from other countries,” Perry emphasized during a press conference on the results of the Bank Indonesia Board of Governors (RDG) Meeting, quoted on Thursday (24/4/2025).

BI’s economic growth projection for the lower point of 4.7% is similar to the IMF’s projection of the potential slowdown in the Indonesian economy this year to 2026, which is also in the range of 4.7%.

April 25, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250425113522-4-628699/bank-dunia-imf-dan-bi-kompak-ramal-ekonomi-ri-tumbuh-47-di-2025)

The United Nations cultural body has recognized two geoparks in Central Java and South Kalimantan, namely Kebumen and Meratus, as UNESCO global geoparks, the Foreign Ministry said on Tuesday. They are among the 16 new global geoparks that have just been approved by the UNESCO executive board in a session in Paris, France, the ministry said in the press release. This followed their nominations by the Global Geoparks Council late last year.

“The UNESCO recognition is evidence of Indonesia’s contribution to preserving Earth heritage,” Mohamad Oemar, Indonesia permanent delegation to UNESCO, said in the press release from the Foreign Ministry on Tuesday.

“At the same time, it signifies a responsibility to preserve, manage sustainably and promote our geological sites and culture,” said Oemar, who is also the ambassador to France.

Located in the southern part of Central Java, Kebumen geopark stretches across an area of about 1,100 square kilometers. According to a UNESCO document, the geopark has conical hills to the southwest and flat alluvial plains to the southeast. The highlight of the geopark is its records of plate tectonic activities that date back as far as 119 million years ago.

The Meratus geopark, meanwhile, covers an area of about 3,600 sq km at the southern tip of South Kalimantan. The landscape has many valleys, waterfalls, rivers, lakes and karst landforms. It is home to Banjar and Dayak people.The geopark features the Meratus Mountains, which are characterized by ophiolite, an exposed oceanic crust that is globally rare. According to the UNESCO document, although ophiolites are found elsewhere in Indonesia, the Meratus Mountains preserve the most complete ophiolite sequence and the oldest in the country.

A UNESCO global geopark is an area that features landscapes of international geological significance. A geopark must be managed with a concept that combines conservation, public outreach and sustainable development.

The inclusion of Kebumen and Meratus brings the number of Indonesian geoparks in the UNESCO list of global geoparks to 12. They include famous tourist destinations Raja Ampat in Papua, which is known for its underwater beauty, and Rinjani-Lombok geopark in West Nusa Tenggara that features Mount Rinjani, known for its breathtaking peak and crescent-shaped crater lake named Segara Anak.

Other geoparks are Toba caldera in North Sumatra, Batur in Bali, Ciletuh in West Java, Ijen in East Java, Belitung in Bangka Belitung Islands, Merangin in Jambi, Maros Pangkep in South Sulawesi and Mount Sewu, which is located along the borders of three provinces in Java.

Holding the status of UNESCO global geopark can help local communities boost tourism. Apart from Indonesia, several other countries had their geoparks recognized this year, such as Norway with its Fjord Coast, Vietnam with Lang Son, South Korea with Danyang and Gyeongbuk Donghaean, North Korea with Mount Paektu and Ecuador with Tungurahua Volcano and Napo Sumaco.

April 16, 2025, The Jakarta Post

(https://www.thejakartapost.com/indonesia/2025/04/16/two-more-indonesian-geoparks-get-unesco-recognition.html)

The first Indonesia-Australia digital training platform has been officially launched to connect Indonesian businesses with Australian training providers. Accessed via iaskills.org, the Indonesia-Australia Skills Exchange (IASE) platform has attracted the interest of more than 120 Indonesian business entities and more than 50 Australian training providers. This digital platform offers 335 courses in various subjects. Leading Australian institutions that have joined this platform are Melbourne Polytechnic, Swinburne University of Technology, TAFE New South Wales, TAFE South Australia, and others.

The launch of this innovative business-to-business platform is a collaboration between the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) Economic Cooperation Program Katalis with the Indonesian E-Commerce Association (idEA).

Katalis Director Paul Bartlett explained that the courses offered by this program are very diverse. Starting from technical courses to soft skill development. Iaskills.org provides a variety of training opportunities for businesses in Indonesia. This platform bridges the local skills gap and plays an important role in improving workforce skills in various sectors.

“This digital platform responds to the need for quality workforce training in the Indonesian industry and expands the international market for Australian training providers. The high interest from both countries reflects shared optimism about this strategic opportunity to strengthen bilateral partnerships and support the implementation of the Indonesia-Australia Comprehensive Economic Cooperation Agreement (IA-CEPA),” Paul was quoted as saying on Thursday (27/2/2025).

Executive Director of the Indonesia Services Dialogue Council Devi Ariyani said that for the first time, businesses in Indonesia can access Australian training that is specifically designed to suit their needs.

“This will help the Indonesian service industry to develop local talent and access the skills needed to thrive in the modern business environment. We look forward to more collaborations in the future between businesses in Indonesia and Australian training providers,” he explained.

idEA Chairman Hilmi Adrianto added that the IASE platform has a variety of capabilities and features designed to meet training needs, such as online, offline or hybrid delivery options, as well as language preferences and course types.

“idEA welcomes this initiative, which pioneers new opportunities for Indonesian businesses to accelerate their capabilities and stand out in the highly dynamic global digital economy. Targeted training to build a highly skilled workforce is an important foundation for Indonesia’s digital economy industry to advance and become more competitive and globally connected,” he said.

February 28, 2025, CNBC Indonesia(https://www.cnbcindonesia.com/tech/20250227193158-37-614301/platform-b2b-indonesia-australia-skills-exchange-resmi-diluncurkan)

Apple will build a Research and Development (R&D) Facility in Indonesia. This plan was conveyed by the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita after an agreement was reached between the Ministry of Industry and Apple regarding investment.

The United States (US) technology giant agreed to continue its investment commitment in Indonesia and chose an innovation scheme to meet the requirements for the domestic component level (TKDN). The innovation scheme will later take the form of an R&D facility.

“The next point that we always pursue, and Alhamdulillah with very tough negotiations, can be in the MoU agreement between Indonesia and Apple, namely the establishment of a Research and Development (R&D) Facility in Indonesia,” said Agus in a press conference at the Ministry of Industry Office, quoted Thursday (27/2/2025).

So far, said Agus, Apple has only built R&D facilities in the US and Brazil. Thus, Apple’s R&D in Indonesia will be the second in the world outside the US, as well as the first in Asia. Agus said the facility will be built in the BSD Tangerang Special Economic Zone (KEK), Banten,

“So far, Apple has only built R&D facilities in America, only one country outside America, namely Brazil. We will be the second country outside America and the first country in Asia to have Apple R&D,” he said.

The establishment and implementation of R&D will involve 15 universities in Indonesia, some of which are the Bandung Institute of Technology (ITB), University of Indonesia (UI), Gadjah Mada University (UGM), and others. Agus assessed that Apple sees Indonesia as an important country for their business so that they are willing to build R&D facilities. In addition, the quality of Indonesian human resources (HR) is ready to support the establishment of R&D facilities.

The Apple R&D Center Indonesia will later focus on HR development which includes software development in the fields of health, internet of things (IoT), and artificial intelligence. In the signed MoU, the iPhone 16 manufacturer stated that it agreed to build the Apple Software Innovation and Technology Institute to the Apple Professional Developer Academy. Apple will also establish the Professional Developer Academy and the sustainability of the Apple Academy.

Later in the Apple Professional Academy facility, experts, both Apple Academy graduates and non-graduates will be gathered to carry out technology development activities, and to improve skills for experts who want to add new skills. All of these plans are included in Apple’s new investment plan of US$ 160 million or IDR 2.6 trillion (exchange rate of IDR 16,360). The achievement of the negotiation agreement means that Apple’s TKDN certificate will be issued soon, which is one of the requirements for the iPhone 16 to be sold in Indonesia.

February 27, 2025, detikFinance(https://finance.detik.com/industri/d-7798753/pertama-di-asia-apple-bakal-bangun-fasilitas-riset-di-indonesia)

The Japanese government provides support to support the implementation of the free nutritious food (MBG) program and improve the quality of education, nutrition, and welfare of children in Biak City, Papua Province. This support is provided in collaboration with UNICEF Indonesia and the National Nutrition Agency.

In a statement obtained by CNBC Indonesia, Tuesday (25/2/2025), Japan provided funding support of $3.4 million (around IDR 55.437 billion) for 2 years. Then, UNICEF will assist provincial and district authorities in Papua to provide a cost-effective MBG program for PAUD and elementary school students using local food and integrated basic nutrition services.

In detail, this program will reach 2,500 preschool and elementary school children with improved nutrition and education services during this partnership. In addition, 150 teachers and principals will receive training in pedagogical skills and nutrition monitoring, including 2,500 parents who will gain knowledge about nutrition and care that supports child growth and development.

A total of 270 government officials, cooking teams, teachers, and principals will also benefit from the school meal capacity building initiative. The program will also conduct capacity building for 50 policy makers in planning and budgeting issues, to achieve tangible results that can support the sustainability of the MBG program.

In addition to MBG, the partnership will also provide professional development training to teachers to improve the quality and inclusiveness of teaching and learning in the classroom, especially in literacy, numeracy, and nutrition awareness. In addition, counseling will be carried out to involve parents in the care and development of their children.

“Japan wants to contribute to school meals in Indonesia by starting from the 100-year experience of the school meal program in Japan. Previously, Japan was also involved in a project to develop fishing ports, freezing facilities, and marketing on six remote islands; with the assistance of a JICA grant, the project launched in 2021 has succeeded in increasing the catch at the Biak Fishing Port,” said the Japanese Ambassador to Indonesia, Masaki Yasushi.

“School meals in Japan actively promote local products for local consumption, and we would like to promote collaboration between the two programs, so that the kitchen center for school meals can utilize fish from the Biak Fisheries Port, which is rich in nutrients including protein.”

Similarly, UNICEF Indonesia Representative, Maniza Zaman stated that nutritious food programs and supportive learning environments are key ingredients for healthy growth and the future success of every child.

“Every child has the right to develop fully, including access to quality social services,” she said.

“UNICEF is proud to partner with the Government of Japan to support Indonesia’s efforts to improve education and nutrition services for children in Papua.”

February 25, 2025, CNBC Indonesia(https://www.cnbcindonesia.com/news/20250225132848-4-613453/jepang-bantu-program-mbg-prabowo-hibahkan-dana-segini)

Indonesia will participate in the World Expo 2025 Osaka. The event, attended by various countries around the world, will last for 6 months from April 13, 2025, to October 13, 2025. Indonesia is ready to present the charm of nature, culture, creativity and leading innovation. Carrying the theme “Thriving in Harmony: Nature, Culture, Future”, Indonesia confirms its commitment to sustainable development.

“This is the only expo in the world with a complete package, all here, tourism, trade, investment. Because people come to enjoy shopping and then investing. This is the driving force of the economy,” said the Director General of National Export Development, Fajarini Puntodewi, at the Kick Off Meeting of Indonesia’s Participation in the World Expo 2025 Osaka, Jakarta, Thursday (13/2/2025).

In its participation, Indonesia has prepared the Indonesian Pavilion with an area of ​​1,750 m², which combines tradition and modernity, inviting visitors to explore the diversity of the nation’s potential. Here, innovations and visions towards Indonesia Emas 2045 will be presented, becoming a source of inspiration in various fields and opening up opportunities for new business partnerships.

There are 8 programs of the Indonesian Pavilion: 1. Theme Weeks, Indonesian participants will fill various forms of activities according to 8 sub-themes that will be displayed at the Expo and Indonesian Pavilions; 2. National Day, held on April 25, 2025, at the Expo Hall/Event Hall 1. Carnival parade from the Expo Hall to the Indonesian Pavilion; 3. Best Practice, Team Expo Program, collaborating with various countries in displaying the best innovation works in achieving SDG’s; 4. Woman Pavilion, promoting gender equality initiatives, progress and empowerment of women globally; 5. Business Forum, a business forum attended by potential international partners in discussing issues and innovations regarding the achievement of SDGs; 6. 1on1 Meeting, an activity that provides opportunities for the government and private sector to explore cooperation agreements; 7. Cultural Performance, a cultural promotion event by presenting cultural arts performances on the stage area of ​​the Indonesian Pavilion; 8. Rolling Exhibition, displaying innovative products in achieving SDGs in the rolling exhibition area and Indonesia craft Indonesian Pavilion.

In addition, the Ministry of Trade will take advantage of the opportunity at the World Expo 2025 Osaka to increase export value. Indonesia’s participation in the World Expo 2020 Dubai was US$ 34.88 billion, consisting of investment with 19 business cooperation agreements and investment of US$ 32.7 billion and trade of US$ 2.18 billion.

“The trade target must be higher than the previous achievement. This is an opportunity that we must take advantage of,” said the Director General of National Export Development, Fajarini Puntodewi.

On the other hand, Japan is Indonesia’s main trading partner and currently occupies the fourth position as an export destination country. Punto believes that participation in the World Expo 2025 Osaka will further strengthen trade relations between the two countries. The trend of trade between Indonesia and Japan continues to show a positive increase of 10.27% annually in the last five years.

February 14, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250213142430-4-610406/world-expo-2025-osaka-ajang-ri-gaet-turis-investor-asing)

(https://www.cnbcindonesia.com/news/20250213122943-4-610345/world-expo-2025-osaka-peluang-besar-genjot-ekspor-indonesia)

Minister of Trade Budi Santoso revealed the trade agreement between Indonesia and Japan, the Indonesia-Japan Economic Partnership Agreement (IJEPA), since it was ratified through Presidential Regulation (Perpres) Number 36 of 2008 and has been in effect since July 1, 2008, IJEPA has provided many benefits for Indonesia.

He said the benefits obtained in the form of a trade surplus that has been maintained for more than 17 years, increased investment in the automotive sector and other industries, and increased human resource capacity in the nursing profession sector.

Even so, the Minister of Trade conveyed the urgency of change with the current conditions, including modernization by referring to the ASEAN-Japan CEPA and RCEP agreements, IJEPA needs to be updated to remain relevant.

“Apart from these benefits, there is an urgency to renew the IJEPA agreement with the aim of modernization and maintaining relevance to current challenges,” said the Minister of Trade in a working meeting with the Indonesian House of Representatives, Thursday (13/2/2025).

The Minister of Trade conveyed that the agreed IJEPA changes included adjustments to IJEPA taxes in several chapters, namely general provisions, trade in goods, movement of individuals, intellectual property, trade through electronic systems, government procurement of goods and services, and final provisions.

In addition, the Minister of Trade conveyed that Japan added a commitment of 112 tariff posts that Indonesia could utilize. Where products that received additional preference from Japan include processed tuna and other marine products, bananas and pineapples, food and beverage products, and cocoa powder.

Meanwhile, Indonesia provided an additional commitment for 25 tariff posts, including iron and steel products, rice flour, automotive products, and special rice. He also mentioned that there were 5 benefits from the IJEPA change protocol as follows:

1. Increasing Market Access for Goods and Competitiveness of Indonesian Products: Indonesian exports to Japan increased by US$ 363.4 million in the 5th year of implementation, especially the 112 new tariff posts committed by Japan, namely tuna, skipjack and processed marine products, bananas, pineapples, cocoa powder, organic chemicals, vegetable oils and other food and beverage products. Then Indonesia’s trade surplus with Japan is projected to grow 20.37% annually, with an increase in exports of more than US$ 300 million in the next 5 years.

2. Increasing Market Access: Indonesia’s e-commerce service trade exports increased to US$ 190.6 million in the 5th year of implementation and reached US$ 1.27 billion in the 10th year of implementation.

3. Absorption of Labor: The workforce absorbed includes air transportation, communications, transportation, warehousing, and supporting activities.

4. Increasing Investment: Japanese investment in Indonesia increased to US$ 10.7 billion in the 10th year of implementation. Increasing the competitiveness of domestic industry through technology transfer and capacity development programs.

5. Increasing Cooperation in the Field of Government Procurement of Goods and Services: This cooperation begins in the field of information exchange and development of market access, government procurement of goods and services.

February 13, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7777383/ada-perubahan-perjanjian-dagang-ri-jepang-mendag-beberkan-manfaatnya)

The Government of the Republic of Indonesia and the Government of the Republic of India have agreed to strengthen cooperation in various fields, from health to culture. The agreement was reached after a meeting between Indonesian President Prabowo Subianto and Indian Prime Minister Narendra Modi and was conveyed in a press statement at Hyderabad House, New Delhi, Saturday (25/1/2025). Starting the press statement, Prabowo greeted Modi with the greeting “My Good Brother”. He also thanked Modi for his extraordinary welcome to his first visit to India as President of the Republic of Indonesia.

“We discussed very intensively and very openly. We discussed many key sectors,” Prabowo said in English. Also present at the meeting were a number of ministers who are members of the cabinets of the two governments. As a follow-up to the cooperation between the two countries, Prabowo gave directions to the ranks of ministers to accelerate the process and cut regulations that could hinder.

“We must accelerate and accelerate economic cooperation with India. We will prioritize this cooperation in the context of the long-term relationship between the two countries,” said Prabowo.

On the same occasion, Prabowo admitted that he was proud to be the Chief Guest of the Republic Day Parade which will be held on Sunday (26/1/2025). Because the previous Chief Guest from Indonesia was President Sukarno at the Republic Day Parade in 1950.

“This is a source of pride for me,” said Prabowo.

Furthermore, Prabowo congratulated Modi and the Indian people on the 76th Republic Day. May prosperity and success always accompany India, a country that has long supported Indonesia.

“India is one of the biggest supporters of our independence. India provides a lot of financial assistance, health assistance, many Indian leaders support us in critical times. Indonesia will never forget this support,” said Prabowo.

Before delivering a press statement, Prabowo and Modi witnessed the exchange of memorandums of understanding (MoU) between the governments of the two countries.

“In our discussions in the fields of trade, investment, tourism, health, energy, security cooperation, AI (artificial intelligence), digital IT, energy, we agreed to strengthen this cooperation,” said Prabowo.

At that moment, there were five cooperation documents that had been agreed upon by the two countries. The cooperation that has been agreed by Indonesia and India includes: 1. MoU on Health Cooperation between the Indonesian Ministry of Health and the Ministry of Health and Family Welfare of the Republic of India; 2. MoU between the Food and Drug Administration of the Republic of Indonesia and the Pharmacopoeia Commission for Indian Medicines and Homoeopathy of the Ministry of Ayush of the Republic of India on Cooperation in the Field of Quality Assurance of Traditional Medicines; 3. MoU between the Ministry of Communication and Digital of the Republic of Indonesia and the Ministry of Electronics and Information Technology of the Republic of India on Cooperation in the field of Digital Development; 4. MoU between the Maritime Security Agency of the Republic of Indonesia and the Coast Guard on Cooperation in Maritime Safety and Security; and 5. Cultural Exchange Program between the Ministry of Culture of the Republic of Indonesia and the Ministry of Culture of the Republic of India for the Period 2025 – 2028.

January 25, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250125155631-4-605959/prabowo-indonesia-harus-percepat-kerja-sama-ekonomi-dengan-india)

Minister of Trade Budi Santoso revealed that Indonesia is the 19th largest supplier of furniture and crafts in the world. The export trend of furniture and crafts in January-November reached US$ 2.22 billion or equivalent to IDR 36 trillion. This was revealed at the launch of the International Furniture and Craft Fair Indonesia (IFFINA) 2025, at the Ministry of Trade, Thursday (1/23/2025).

“The export value of furniture and crafts in Indonesia from January to November 2024 reached US$ 2.22 billion with the main destination countries being the United States, Japan, the Netherlands, Germany, and Belgium,” said Budi.

The growth trend of Indonesian furniture and crafts in 2023 reached US$ 2.46 billion with an annual growth trend of 2.62% in the last 5 years. According to Budi, world demand for furniture and crafts is still quite promising, where the world demand trend continues to grow positively by 15.09%.

“Specifically for furniture products, the global market size reached US$ 770.42 billion in 2024 and is projected to reach US$ 925.46 billion in 2029,” he explained.

On the same occasion, the Indonesian Furniture and Craft Industry Association (ASMINDO) said that in 2024, the furniture industry again contributed positive value to the national economy, especially in the export sector, increasing by 4.7% compared to 2023.

Starting from this optimism, Asmindo will again hold an annual event for furniture and design industry players, namely IFFINA 2025. This year’s IFFINA event will be presented differently from before by raising the theme “A Showcase of Indonesia’s Finest Furniture and Homedecor”, which of course is expected to present the best products from the furniture, craft, design, and homedecor industries.

For this reason, IFFINA+ is here with the aim of meeting the needs of the domestic and international markets, supporting export growth, while opening up great opportunities for the project sector in Indonesia.

“The hope of business actors is that the government can provide incentives to attract investors to build factories that are able to produce mass products and supporting raw materials such as hinges and drawer rails in Indonesia, so that technology transfer can occur. Thus, together we can support the growth of the national furniture industry,” said Dedy.

January 23, 2025, detikFinance

(https://finance.detik.com/industri/d-7745991/mendag-ungkap-ekspor-mebel-ri-tembus-rp-36-t)

Indonesia continues to move forward in optimizing the potential of its natural resources as evidenced by the downstream mining industry program. Until 2024, this program has had a significant impact in building a national economy based on added value that focuses on copper, bauxite, and silica sand commodities. If carried out and realized in accordance with the existing investment plan, downstreaming will be a prerequisite for the processing industry sector to support the achievement of Indonesia Emas 2045. Downstreaming of the mining industry, especially copper, bauxite, and silica sand, was initially carried out through the construction of copper and bauxite smelters, as well as the development of products made from silica sand.

This statement was expressed in research by the Faculty of Economics and Business, University of Indonesia (FEB UI) entitled “Study of the Impact of Mining Industry Downstreaming on the Economy, Social, and Environment: Copper, Bauxite, and Silica Sand”.

Deputy Head of the Center for Sharia Economics and Business, Faculty of Economics and Business, University of Indonesia (PEBS FEB UI) Nur Kholis said that the requirement for the processing industry sector to be able to support the achievement of Indonesia Emas 2045 is the use of products from smelter processing. The product can be downstreamed again as input in the development of products that have higher added value domestically to the final product.

Downstreaming has enabled Indonesia to no longer just export raw materials. Value-added products such as copper cathodes, alumina, and silica sand-based products such as glass and ceramics, and in the future solar panels and semiconductors are now starting to be produced domestically. This is a strategic step to strengthen the national industrial structure and open up new economic opportunities. Indonesia cannot continue to rely on exports of raw materials and imports of intermediate goods from abroad. Downstreaming is Indonesia’s path to economic independence.

“By increasing investment in order to produce value-added products domestically, we create jobs, increase people’s income, and ensure that our natural resources truly provide maximum benefits for the nation,” said Nur Kholis in his official statement, Wednesday (15/1/2025).

In addition, Nur Kholis explained, the impact of the downstreaming of copper, bauxite, and silica sand has begun to be felt in areas such as Gresik Regency (East Java), Mempawah Regency (West Kalimantan), and Batang Regency (Central Java), where the construction of smelters has become the driving force of the local economy. In addition to increasing Gross Regional Domestic Product (GRDP) and regional income, this policy has also created thousands of jobs, both directly and indirectly.

However, downstreaming also faces challenges such as limited infrastructure and technology, limited skilled workers, fluctuating market demand, and negative impacts on the environment. According to him, the government needs to take a number of strategic steps to face these challenges. For example, human resource development, research and development of technology, application of environmentally friendly technology, product diversification, and strengthening international cooperation.

“Downstreaming of the mining industry, especially copper, bauxite, and silica sand also needs to continue to be encouraged to apply environmentally friendly technology in all mining mineral processing facilities. Effective waste management must be an integrated part of the implementation of downstreaming,” he said.

January 15, 2025, CNCB Indonesia(https://www.cnbcindonesia.com/news/20250115200002-4-603501/hilirisasi-jadi-prasyarat-sektor-industri-menuju-indonesia-emas-2045)