State Speech, Jokowi: Downstreaming Bitter At The Beginning But Sweet In The End

JAKARTA - President Joko Widodo (Jokowi) does not deny the government's decision to intensify downstream industry, especially in the mining sector, to put pressure on itself in the short term.

However, he said that Indonesia will achieve greater benefits in the long term ahead.

We are doing this effort and it must continue. This is indeed bitter for raw material exporters. It is also bitter for short-term state revenues. But if the big ecosystem has been formed, the processing plant will already operate.

"I make sure this will bear sweet fruit in the end. Especially for the welfare of the Indonesian people," he said at the MPR Annual Session, Wednesday, August 16.

The President explained that the downstream that he wants to do now is downstreaming which is comprehensive and not only fixated on mineral commodities.

"But on the non-mineral side (we do) such as coconut seaweed palm oil and other potential commodities that optimize local content and partner with MSME farmers and fishermen so that the benefits are felt directly for the small people," he said.

As an illustration, nickel downstream investment grew rapidly with the establishment of 43 processing plants and opened up huge job opportunities.

"This is only 1 commodity," he said.

The Head of State noted that based on estimated calculations in 10 years, Indonesia's population per capita income per year will reach Rp153 million or the equivalent of 10,900 US dollars.

Then, in 15 years our per capita income will reach IDR 217 million or 15,800 US dollars. Then, in 22 years of income per capita will reach IDR 331 million or the equivalent of 25,000 US dollars.

In comparison, in 2022, Indonesia's population per capita income was at IDR 71 million. This means that in 10 years it has more than doubled.

"Based on the International Institute for Management Development (IMD), our competitiveness in 2022 will rise from rank 44 to 34. This is the highest increase in the world," said the President.