JAKARTA - The downstream investment reached around Rp300 trillion in the first half of 2026 or 29.7 percent of all investments entering Indonesia. The share continues to grow, but is still dominated by mineral processing and concentrated outside Java.
Minister of Industrialization and Investment and Head of BKPM Rosan Roeslani said the contribution of industrialization to national investment rose from around 24-25 percent in 2023 to almost 30 percent this year.
"The trend, we see that downstream will continue to increase," said Rosan at the Presidential Office, Presidential Palace Complex, Jakarta, Thursday, July 16.
Mineral downstream investment reached Rp206.5 trillion. The plantation and forestry sector absorbed Rp54.4 trillion, followed by oil and gas Rp35.4 trillion and fisheries and marine resources Rp3.8 trillion.
As much as 75.7 percent of the downstream investment or Rp227.3 trillion is outside Java. The projects are spread among others in North Maluku, Sulawesi, and West Nusa Tenggara.
In terms of capital sources, foreign investment in the downstream sector reached IDR 212.8 trillion. Domestic investment was recorded at IDR 87.3 trillion.
In the second quarter of 2026 alone, downstream investment reached IDR 152.7 trillion. The value increased by 5.7 percent and contributed 29.8 percent of the total investment in the quarter.
A striking change occurred in the main commodities. Bauxite for the first time took the top position, displacing nickel which had dominated downstream investment.
"Usually nickel is always number one. Now there is a shift, bauxite is number one," said Rosan.
According to Rosan, the increase in bauxite investment was driven by the development of a number of projects by domestic and foreign investors.
The government still wants to expand downstream to other commodities, including palm oil, rubber, wood, silica sand, oil and natural gas, as well as fisheries.
Rosan assessed that the downstream of a number of commodities is still in the early stages. Unlike nickel, whose industry chain has included ore, nickel sulfate, cathode and anode materials, battery cells, battery packs, to battery recycling.
Similar patterns will be driven in bauxite and other commodities that have large reserves in Indonesia.
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