ASIATODAY.ID, JAKARTA — Indonesia’s downstream industrial investment has reached an impressive IDR 431.4 trillion (USD 27 billion), accounting for 30.1% of total realized investment between January and September 2025, according to the Ministry of Investment and Downstreaming/BKPM.
Minister of Investment Rosan Perkasa Roeslani announced the data in Jakarta on Friday, October 17, 2025, highlighting that downstream projects have recorded a 58.1% growth year-on-year, underscoring Indonesia’s accelerating industrial transformation.
“We anticipate this percentage will continue to increase in the coming months and years, reflecting investor confidence in Indonesia’s downstream policy,” Rosan stated during a press conference.
Massive Investments Driven by Mineral Processing
The mineral sector remains the backbone of downstream investment, contributing IDR 291.6 trillion (USD 18.3 billion). The breakdown includes:
Nickel processing: IDR 136.1 trillion (USD 8.5 billion)
Copper: IDR 61.2 trillion (USD 3.8 billion)
Bauxite: IDR 43.2 trillion (USD 2.7 billion)
Iron and steel: IDR 31 trillion (USD 1.9 billion)
Tin and others: IDR 20.1 trillion (USD 1.3 billion)
“Nickel remains the single largest contributor to our downstream growth, positioning Indonesia as the world’s leading nickel processing hub,” Rosan added.
Diversification Beyond Mining
Following minerals, plantation and forestry-based downstream industries contributed IDR 103.3 trillion (USD 6.5 billion), covering:
Palm oil: IDR 52.7 trillion (USD 3.3 billion)
Logs and timber: IDR 36.6 trillion (USD 2.3 billion)
Rubber: IDR 9.7 trillion (USD 620 million)
Other commodities (nutmeg, coconut, cocoa, and biofuel): IDR 4.3 trillion (USD 270 million)
Meanwhile, oil and gas downstream projects accounted for IDR 32.6 trillion (USD 2 billion) — comprising oil refining (IDR 18.3 trillion) and gas processing (IDR 14.3 trillion).
The fisheries and marine downstream sector, though relatively smaller, still recorded IDR 3.9 trillion (USD 245 million). Key commodities include salt, tuna, skipjack, shrimp, seaweed, crab, and tilapia.
Indonesia Strengthens Its Position as a Global Downstream Powerhouse
Rosan emphasized that these investments demonstrate Indonesia’s strong commitment to resource-based industrialization, energy transition, and green economy development.
“The scale of downstream investment proves that Indonesia’s industrial policy is not just about extracting resources, but about adding value, creating jobs, and driving sustainable growth,” he said.
The government aims to further streamline permitting processes, enhance infrastructure support, and promote responsible mining practices that align with global ESG (Environmental, Social, and Governance) standards. (AT Network)
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