ASIATODAY.ID, JAKARTA – The Indonesian government is intensifying its efforts to accelerate critical mineral downstreaming as a key strategy to drive the country’s transition toward a green and sustainable economy.
This initiative took center stage at the Indonesia International Sustainability Forum (ISF) 2025, on October 11, 2025, underscoring Indonesia’s position as a vital player in the global clean energy supply chain.
A high-level panel session titled “Enhancing Downstreaming: Sustainable Investment in Critical Minerals Industries” gathered prominent figures from the government, industry, and international organizations to discuss sustainable downstreaming and global competitiveness.
The panel featured Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM; Tony Wenas, CEO of PT Freeport Indonesia; Utomo Nugroho, Director of Infrastructure and Operations at PT Krakatau Steel; Raelene Martin, Global Head of Sustainability at the International Chamber of Commerce (ICC); and Walter Lin, Managing Director for Asia at SEDEX. The discussion was moderated by Ashwin Balasubramanian from McKinsey & Company.
Government Targets USD 245 Billion Investment in Downstream Industries
In his presentation, Nurul Ichwan emphasized that critical mineral downstreaming serves as the foundation for Indonesia’s economic transformation. The government aims to attract more than USD 245 billion in investment over the next five years to develop downstream industries for 15 priority commodities, including nickel, copper, bauxite, and steel.
“Downstreaming is not just about industrialization—it’s about creating sustainable economic value, supporting the energy transition, and strengthening Indonesia’s position in the global supply chain,” said Nurul Ichwan.
He further highlighted the importance of aligning Indonesia’s downstream policies with global regulatory frameworks, including the EU Carbon Border Adjustment Mechanism (CBAM) and environmental and human-rights due diligence standards, to ensure competitiveness in international markets.
Critical Minerals as Strategic Assets in Global Economic Diplomacy
Nurul pointed out that critical minerals have become strategic assets in international economic diplomacy, where national policy must balance the interests of resource-rich countries with those possessing advanced technology and capital.
The government encourages downstream development in line with good mining practices and the adoption of clean energy, ensuring a balance between economic growth and environmental sustainability.
Panelists also highlighted Indonesia’s vast potential to expand its downstream processing capacity for nickel, copper, bauxite, and rare earth elements—key materials for electric vehicle ecosystems and renewable energy technologies.
As the global market shifts toward lithium iron phosphate (LFP) battery technology, Indonesia is urged to continue innovating to maintain its competitive edge.
Meanwhile, a strategic partnership between Freeport Indonesia and Antam to supply 30–50 tons of gold annually for domestic demand represents a concrete step toward enhancing national value creation and industrial resilience.
The discussion also underscored the importance of data interoperability and global supply chain traceability, championed by the International Chamber of Commerce (ICC), as key tools to build transparency, investor trust, and sustainable investment.
At the same time, Krakatau Steel reaffirmed the vital role of the steel industry in Indonesia’s economy. Every one dollar invested in the steel sector can generate up to 2.5 times additional value in the supply chain and 13 times in related industries, while creating extensive job opportunities in line with the country’s green industry roadmap.
Positioning Indonesia as a Global Green Economy Hub
Through green-oriented critical mineral downstreaming, the government targets inclusive economic growth of up to 8 percent, aiming to position Indonesia as a regional and global hub for sustainable investment.
Cross-sector collaboration among the government, private sector, and international partners is expected to strengthen Indonesia’s mineral value chain, ensure responsible governance, and establish the nation as a central pillar of the global green economy in the energy transition era. (AT Network)
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