The Ministry Of Industry Will Focus On Downstreaming Industry To Support National Economic Growth

JAKARTA - To support national economic growth, the Ministry of Industry (Kemenperin) is focusing on implementing industrial downstream policies in three sectors, namely agro-based industries, based on mining and mineral materials, and based on oil and gas and coal.

"As emphasized by the President, we will gradually stop raw materials, such as mineral and coal. We have stopped exporting nickel, and then stop exporting bauxite," said Industry Minister Agus Gumiwang Kartasasmita in her office, Jakarta, Tuesday, December 27.

Regarding the development of mining and mineral-based industries, Agus said, his party is trying to spur added value in five commodities, including copper ore, iron ore and iron sand, nickel ore, bauxite, and rare earth metal.

"The development of downstreaming in this sector has resulted in 27 smelters, which include pyrometallurgy and hydrometallurgy of nickel. Then, 32 (smelters) are in the construction stage, and six are still in the feasibility study stage," he said.

In the future, Agus hopes that nickel smelters will not only export in the form of NPI and battery raw materials, but in the form of more downstream products, such as stainless steel and electric batteries.

The downstream capability of this sector will also produce downstream products or finished products, such as medical equipment, kitchens, aerospace, and electric vehicles.

The increase in added value from nickel ore can reach 340-400 times.

According to the Minister of Industry, the positive impact of downstreaming of the mining and mineral sectors has shown a significant increase in the achievement of national export value.

As of October 2022, the export value of this industry has exceeded the figure of 36.4 billion US dollars, an increase of 40 percent compared to the same period last year.

"We are targeting growth in this sector in 2022 to reach double digits, at 10-11 percent," said Agus.

Therefore, Agus continued, his party is now focusing on improving the performance of the manufacturing industry sector because it is the main driving force for national economic growth.

One of the strategic policies that continues to be implemented is the downstream industry.

"According to President Joko Widodo's direction, we need to strengthen the downstreaming of the manufacturing industry sector. We are optimistic that we can do this, because so far it has proven to be a prime mover for the national economy," he said.