Downstreaming Is A Priority In The Prabowo-Gibran Government
JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) said that the raw material processing policy into high added value products (hilirization) is one of the priority programs in the next government.
"This has been announced since the time of President Jokowi and God willing, later by the elected President, Mr. Prabowo, this will be one of the priorities, this downstreaming," said Deputy for Climate Development for Investment at the Ministry of Investment/BKPM Riyatno as reported by ANTARA, Wednesday, September 25.
He said the next government's commitment to the promotion of downstreaming in the country was because the regulation had provided many benefits for the Indonesian economy.
As is the case with the processing process in the nickel sector which provides an additional value of 11.4 times when processed into nickel sulfate, a 19.4-fold increase when sold as a precursor, and an increase of up to 67.7 times when sold in the form of electric vehicle (EV) battery cells.
In addition, Riyatno said to maintain the downstream ecosystem in a sustainable manner, according to him, the Ministry of Investment has implemented several things, such as the issuance of supporting regulations, tax incentives, encouraging policies in the financial sector, as well as regulations on prohibiting the export of raw materials for nickel, bauxite, copper and tin.
"One of the tax incentives handled through the Ministry of Investment/BKPM is tax holidays and tax allowances. Then there is also a financial sector policy, namely OJK issuing policies in the banking industry to support the acceleration program for battery-based electric motor vehicles, for example," he said.
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Previously, Indonesian President Joko Widodo entrusted the sustainability of industrial downstreaming to the Nusantara Capital (IKN) development project to Prabowo Subianto after becoming President of the Republic of Indonesia for the period 2024-2029.
President Jokowi emphasized that the sustainability of the people's program, be it the sustainability of infrastructure development and human resources (HR), is very important.