MIND ID Plans Investment Allocation Of Up To 30 Billion US Dollars

Illustration (Photo: Doc Antara)

JAKARTA - BUMN Mining Industry Holding Indonesia MIND ID plans to allocate investments worth 20 billion to 30 billion US dollars in the next five years.

This investment is part of the company's efforts to further increase the added value of mineral commodities through downstream projects while supporting Indonesia's economic growth.

Director of Portfolio and Business Development MIND ID Dilo Seno Widagdo said that investment is one of the most effective steps to improve economic growth performance more aggressively in the future.

MIND ID has consistently realized strategic project investments in order to be able to process minerals into raw materials products that are ready to support domestic industrialization, especially electric vehicle batteries or EV Battery.

Our investment for the next 5 years from MIND ID's own equity is almost 20 billion dollars. We hope that there will be investment from investors entering Indonesia. So maybe up to 30 billion US dollars," he said, Friday, October 18.

Dilo conveyed that MIND ID's investment focus is fixed for the development of the EV battery ecosystem, which is in line with the government's policy direction in encouraging downstreaming of mineral commodities.

Through this investment, MIND ID Group is also committed to creating new jobs and increasing economic equality in the regions.

"Moreover, we know that the manufacturing sector has been able to absorb nearly 18 million workers or about 20 percent of the total jobs in Indonesia, and we are committed to continuing to increase this number," added Dilo.

Dilo emphasized that MIND ID continues to open itself to investment by establishing strategic cooperation with global partners. The hope is that the MIND ID Group will help the government promote increasing more capital flows into Indonesia.

Meanwhile, investment in the upstream coal mineral sector (minerba) in Indonesia is able to provide investment returns of up to 25 percent, and to 15 percent to 20 percent for the midstream segment from the mineral sector. In the downstream sector, investment returns are also still good with great market capacitation opportunities.

"We want the investor to enter Indonesia. Investors will certainly be very interested in developing the downstream ecosystem in Indonesia. So we hope that investment in Indonesia will get better," he said.

Researcher from the Center of Industry, Trade, and Investment Institute for Development of Economics and Finance (Indef) Ahmad Heri Firdaus said that based on studies, downstream investment carried out in the regions was able to increase local economic growth from 20 to 161 percent.

Therefore, he believes that investment in the downstream ecosystem needs to be applied in many regions so that it is able to provide a larger multiplier effect of the economy at the national level.

"Indeed, economically, investment in downstreaming cannot be denied is an extraordinary impact, especially if we look at data in the regions, what needs to be done in the future is what if this succession is copied in many regions, in Papua, Kalimantan, anywhere, perhaps the impact on the national sector will be felt," he concluded.