JAKARTA - Downstreaming of the mineral and coal (minerba) sector is a driving force in achieving President Prabowo Subianto's 8 percent economic growth target.
Large investments in this sector are considered capable of driving multiplier effects for the economy, including increasing manufacturing capacity and creating more jobs.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that downstreaming is one of the main agendas for national development, along with efforts to strengthen energy independence and security.
"In the President's priority, Asta Cita, the key is energy independence and security, as well as downstreaming. These two elements are the mainstays of the coal sector," he said at the Indonesia Mining Forum, quoted on Saturday, August 2.
Airlangga emphasized that downstreaming the mineral and coal sector is crucial to supporting the 8 percent annual economic growth target and achieving the Net Zero Emissions (NZE) target by 2060.
The government is targeting a total investment of IDR 13,000 trillion during the 2025–2029 period. Of this amount, downstream mineral and coal projects are estimated to contribute up to US$20 billion.
He also mentioned that the government is encouraging the development of a new and renewable energy (EBT) ecosystem, including solar panels, electric vehicle (EV) batteries, and the downstreaming of silica into solar panel components and semiconductors.
This potential is projected to increase Indonesian exports to US$850 billion and increase Gross Domestic Product (GDP) by US$236 billion by 2040.
Mind ID Corporate Secretary, Pria Utama, emphasized that the company consistently plays a strategic role as a key driver of downstreaming in the national mining industry.
"Downstreaming is the guiding mandate for every MIND ID strategic initiative. Together with all our members, we are committed to ensuring that every downstreaming program delivers maximum benefits for economic growth," he said.
One form of mineral downstreaming currently being implemented is increasing the added value of bauxite into aluminum. Through integration within the MIND ID Group, bauxite is processed into a strategic raw material that supports the national industrialization agenda.
This integration process includes optimizing bauxite mines, building Smelter Grade Alumina Refinery (SGAR) facilities, and finally aluminum smelters. This entire value chain can create a significant economic impact domestically.
To illustrate, one ton of bauxite, valued at around US$40, can increase to US$575 per ton in the form of alumina, and again jump to US$2,700 per ton when converted into aluminum.
"By strengthening this aluminum supply chain, we believe the impact will be significant, not only for the national economy, but also for regions, which will enjoy more equitable and equitable growth," he concluded.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
