Bahlil Hopes Parts Of Dana Antara Funds Are Used To Finance Downstreaming

Illustration (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia hopes that some funds from Danantara will be used to finance downstream investment in Indonesia.

What has been conveyed by Mr. President Prabowo that on the 24th (February), Mr. President will inaugurate a new institution called Danantara. Several SOEs (State-Owned Enterprises) are all focused there, which, God willing, may our proposal, the President agrees that some of the Funds are used to finance downstream investment in the Republic of Indonesia," he said as quoted by ANTARA, Wednesday, February 19.

Currently, the government is said to be focusing on encouraging downstreaming as the most important part to create added value.

Based on the master plan that has been compiled, downstream investment until 2040 requires US$618 billion in 28 commodities, including in the forestry, fishery, agriculture, plantation, and mining and gas sectors.

"So, we really focus on providing added value in the country," he said again.

On the other hand, many foreign players actually benefit the most from downstreaming, because many investments and technology come from banks and foreign companies.

Therefore, he assessed that national banks such as Himbara (State-Owned Bank Association) could be involved in investment financing in the downstream sector through cooperation with foreign banks.

This is sought to trigger economic growth of up to 6 percent, then increase Gross Domestic Product (GDP) and per capita income, open quality job opportunities, and increase Regional Minimum Wage (UMR).

However, the Minister of Energy and Mineral Resources emphasized that foreigners should not become majority shareholders in the downstream program.

They have technology, they have a market. We have started to think, we have raw materials, and we have money. To be honest, when we were Minister of Investment, when we were Minister of Investment, wooing FDI (Foreign Direct Investment), it was a bit of a strain because it seemed as if we were a country that needed them, and indeed we need it. If we have sufficient capital, we have a strong bargaining position. This is where we can work together to manage our natural resources, "said Bahlil.

Based on this factor, he hopes that the President can decide that some funds from the Danantara can be invested in providing additional value creation in the downstream sector.

"This is to provide sovereignty for us in order to take advantage of the added value process of all our natural resources in Indonesia," he said.