Indonesia Targets $618 Billion in Investment from Downstreaming 28 Commodities

Jakarta, Indonesia - The Indonesian government has announced ambitious projections for its downstreaming program, which aims to enhance the value of 28 strategic commodities. This initiative could generate investments of up to $618.1 billion and exports reaching $857.6 billion, alongside an economic value addition of approximately $235.9 billion, according to the Coordinating Minister for Economic Affairs, Airlangga Hartarto.

Airlangga emphasized that downstreaming is crucial for increasing the added value of Indonesia's natural resources, both renewable and non-renewable. He stated during a recent press conference that the development of industry or the economy is key because the added value of natural resources is becoming important.

“The development of industry or the economy is key because we are pushing for the added value of natural resources to become important.”Airlangga Hartarto, Coordinating Minister for Economic Affairs

In detail, the government anticipates that the additional value generated from downstreaming could lead to a near $500 billion increase in exports. This initiative is not limited to the mineral and coal sectors; it also encompasses agricultural, forestry, and marine commodities, including palm oil, rubber, and various fish products, which are seen as having significant export potential.

Investment in downstreaming has already shown promising results. According to the Investment Minister and Head of the Investment Coordinating Board (BKPM), Rosan P. Roeslani, this sector contributed about 30% of total investments in Indonesia during 2025-2026, amounting to approximately IDR 650 trillion out of a national investment target of IDR 2,041.3 trillion.

Roeslani highlighted that downstreaming is a fundamental pillar for attracting investments, particularly in the electrification of supply chains from mining to electric vehicles. Indonesia has initiated operations at two battery cell factories in collaboration with Hyundai and CATL, with one in six new cars sold in the country being fully electric.

“Downstreaming is a fundamental pillar for attracting investments.”Rosan P. Roeslani, Minister of Investment and Head of BKPM

According to data from the Ministry of Investment, the realization of investments in the first quarter of 2026 reached IDR 498.8 trillion, marking a year-on-year growth of 7.2%. This reflects sustained investor interest amid global economic uncertainties. Notably, 75.7% of investments in downstreaming during the first half of 2026 were realized outside of Java, indicating a shift towards more inclusive economic development across the archipelago.

Additionally, the Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, reported that investments in mineral downstreaming alone reached IDR 206.5 trillion in the first half of 2026, the highest among other sectors. He noted that the government is developing 26 strategic national downstreaming projects valued at around IDR 225 trillion.

“The realization of investments in the first quarter of 2026 reached IDR 498.8 trillion, marking a year-on-year growth of 7.2%.”Rosan P. Roeslani, Minister of Investment and Head of BKPM

However, challenges remain, particularly in securing the necessary production plans from mining companies. Members of the Indonesian Parliament, such as Ramson Siagian, have urged the government to expedite the completion of work plans and budgets for mining companies to ensure a steady supply of raw materials for downstream projects.

Overall, the government's focus on downstreaming is seen as a vital strategy for enhancing Indonesia's economic resilience and competitiveness in global markets.