Indonesia's Economy Grows Positively, Sri Mulyani Hopes That The Downstreaming Program Can Continue

Minister of Finance Sri Mulyani Indrawati said that efforts to accelerate future economic growth through the downstream program need to be continued and expanded. So that not only in the form of raw material processing but also in the development of a more downstream industry.

Therefore, according to Sri Mulyani, it can create higher added value, including further strengthening Indonesia's exports and roles in the global supply chain and strengthening the industrial structure in the country.

According to Sri Mulyani, the advanced downstream program and its expansion are also expected to provide greater jobs with much more decent wages.

"The success of nickel can be an example for downstreaming of other mineral products such as copper," he said in an introductory speech for the Macro Economic Framework and Fiscal Policy Principles (KEM PPKF) during a plenary session of the DPR, Monday, May 20.

Sri Mulyani said that downstream copper should not stop at cathode products, but for the development of the cable industry, which has much greater added value with the potential for a wider global supply chain.

"Similarly, efforts to develop the electric vehicle and battery industry need to be consistently continued," he said.

Sri Mulyani conveyed that efforts to accelerate economic structural reform through downstream strategies, especially Natural Resources (SDA) have proven to be able to strengthen Indonesia's export performance in recent years. Especially contributed by export performance in terms of downstream nickel and crude palm oil or CPO.

Meanwhile, in terms of export value in 2022, it has reached 292 billion US dollars, an increase from the export value in 2014 of 176 billion US dollars. The realization of export value in 2022 is the highest record in Indonesian history.

As for 2022, the trade balance surplus also recorded a record high of USD 54.5 billion. This value was able to reverse the condition of the trade balance deficit in 2014 which amounted to USD 2.2 billion.

Sri Mulyani said the sharp spike in export performance was mainly contributed by downstream products, especially nickel and CPO products.

"In 2023, the trade balance position will decline slightly due to the weakening of the economy and the decline in commodity prices, but still recorded a fairly large surplus, 36.9 billion US dollars," he said.

In addition, Sri Mulyani said that downstreaming has also succeeded in creating new sources of growth outside Java. Central Sulawesi and North Maluku Provinces grew significantly, supported by nickel downstream, where in 2023, each grew 6.4 percent and 6.9 percent, much higher than the national growth of 5.05 percent.