Minister of Finance Sri Mulyani: The Republic of Indonesia Strengthens Downstreaming to Survive Amid Hot Geopolitical Tensions

Minister of Finance, Sri Mulyani Indrawati. (Photo: Doc. Antara)

JAKARTA - Minister of Finance Sri Mulyani Indrawati said downstreaming is the Indonesian Government's strategy to strengthen the country's economic foundation amidst geopolitical tensions.

The reason is, Indonesia is rich in natural resources, including minerals which are much needed in an era of rapid battery and electric vehicle industries.

"Therefore, in the context of global trade, the government is implementing a downstream policy to increase added value and strengthen Indonesia's external balance," said Sri Mulyani in a written statement, quoted from Antara, Monday 16 October.

The State Treasurer explained that the increase in geopolitical tensions in recent times would create a situation of uncertainty and affect future economic projections.

However, in the midst of a dynamic global situation, Sri Mulyani said that Indonesia actually has a very strategic position thanks to its natural resources.

"Currently, we are focused on improving and strengthening the economic structure, one of which is through downstream policies, by building more smelters which will increase added value and strengthen our external balance," she said.

Efforts to strengthen economic fundamentals, continued the Minister of Finance, are also being carried out by the government through the implementation of various omnibus law policies, such as the Law on Harmonization of Tax Regulations (UU HPP), the Law on Harmonization of Central and Regional Finance (HKPD), the Law on Development and Strengthening of the Financial Sector (P2SK), etc.

Strengthening also includes improvements in the banking sector, non-bank financial institutions, pension funds, stock markets, including innovations in opening carbon exchanges.

On a separate occasion, Bank Mandiri Chief Economist Andry Asmoro believes that the government's downstream initiatives could be one of the keys to maintaining investment performance in the political year.

She conveyed this during the Ministry of Finance (Kemenkeu) Media Gathering in Puncak, Bogor, Tuesday (26/9).

Apart from the nickel downstreaming that has been carried out, Asmo believes that the government can also optimize downstreaming in other industries. Moreover, if you consider the huge investment potential in electric vehicles (EV).