Jokowi's Speech At The PDIP Anniversary: Continuation Of Industrial Downstreaming Is A Challenge For Candidates For President Of The Republic Of Indonesia

President Jokowi gave a speech at the 50th Anniversary of the Indonesian Democratic Party of Struggle (PDIP) at JIExpo Kemayoran, Jakarta on January 10, 2023. (BPMI Setpres/Muchlis Jr)

JAKARTA President Joko Widodo (Jokowi) wants his successor to dare to continue efforts to downstream the industry, both in the mining, plantation and agricultural sectors in order to make Indonesia a sovereign country.

Jokowi firmly conveyed this in his speech during the 50th Anniversary of the Indonesian Democratic Party of Struggle or PDIP at JIExpo Kemayoran, Central Jakarta on January 10.

It has been more than 400 years since the colonial era, the produce of Indonesia seems to have been extorted by foreign parties. Bringn out, processed, then resold with multiple profits. Meanwhile, Indonesia did not get any significant added value. Only a small amount of tax, royalties, and dividends for the country. Fields for the people are also difficult to obtain.

Now, Indonesia should change. Bung Karno in 1965, said Jokowi, has mandated to reject dependence on imperialism, expand cooperation that is equal and mutually beneficial, So that we cannot be dictated and do not depend on our country. This is what we want to do independent, independent, independent.

So far, according to Jokowi, a number of large assets can be taken over again. Like Freeport, which has been controlled by American companies for 50 years, Jokowi claims, "In the last 3 years, the majority of the shares around 51.2 percent have been owned by us. In fact, 98 percent of the workers are Indonesian citizens, 41 percent of whom are from Papua today."

"What we want from this takeover is downstream industry, don't let the mines be in Papua, the industry is in Japan or Spain, we can't get anything," said Jokowi.

Since the last three years, President Jokowi claims to have taken over the majority of Freeport's shares. (Between)

Also the Rokan Block, which has been managed by the United States Chevron for 97 years and the Mahakam Block, which is managed by a French company for 43 years, Total. Now, the management has moved to Pertamina.

"What I see in the field, 100 percent of the workers in the Rokan Block are Indonesian citizens, and yesterday there were additional 12,500 new workers because we wanted to drill more existing wells," said President Jokowi.

However, the most important effort from downstreaming the industry is not only to take over assets, but also to build a system so that Indonesia's natural products can be of great benefit to the progress of the country's economy.

We have stopped nickel exports since 3 years ago. In the past, when we were still raw, we only exported Rp. 17 trillion per year. After we stop, we can produce approximately Rp. 360 trillion per year. This is only nickel," said Jokowi.

Then bauxite, we have also announced stops in June 2023 and we will downstream the domestic industry. I don't know the jump forecast, our estimate will be from approximately Rp20 trillion to approximately Rp60-70 trillion," he added.

Nickel and bauxite, then also copper and tin, according to Jokowi, can produce finished or semi-finished goods that can provide the greatest added value, especially employment.

Everything must be integrated so that we hope that later this will become an ecosystem for electric vehicles. It can provide a bright future in the future, because all markets of countries need electric cars. But, of course, the stages will enter the electric battery first," he said.

If it goes well, Jokowi believes that the battery and electric car ecosystems can provide hundreds of times more added value. Downstream industries will be the biggest leap of state civilization.

However, not without challenges. A lawsuit from the World Trade Organization (WTO) emerged after the cessation of exports of nickel and Indonesia was declared defeated.

"That's trade that sometimes pressures countries so that they follow the rules of the game made by big countries, so that if we export only raw materials, until the end we will become a developing country," said Jokowi.

"Even though we are scared about Freeport, we will continue. Nickel too. Even though we lose the WTO, we also continue. Instead, we will stop the bauxite, in the middle of the year we will stop the copper again, we must be brave," Jokowi emphasized.

It must not be delayed because the natural wealth of Indonesia belongs to the Indonesian people and is used as much as possible for the welfare of the Indonesian people.

"I once said at the ASEAN-EU Europe summit, the partnership must be equal and there should be no coercion, no country should dictate, and those developed countries should not feel that their standards are better than our country," Jokowi said.

Jokowi did continue to repeat the story. He wants the next president to also dare to continue his struggle. It is not easy to be discouraged, not afraid for the benefit of the nation and for the sake of the state.

"I am very happy earlier that the general chairman of Mrs. Megawati Soekarnoputri said that the candidate (candidate) is from her own cadre. And what I am happy about, I apologize, Mrs. Mega in deciding is really very careful, really calm and not grup like the others. Being urged from anywhere is not shaky, even though her name is already in Mrs. Mega's pocket," said Jokowi, adding.