Menilik Kelanjutan Agenda Hilirisasi Indonesia | IDX CHANNEL

Summary

Indonesia's government, led by President Prabowo Subianto, is driving forward a comprehensive initiative to accelerate the downstreaming of its natural resources, focusing on 35 mega projects worth over $123 billion. These efforts aim to boost the national economy, achieve energy independence, and attract foreign investments. The task force overseeing this initiative is tackling regulatory challenges and promoting local industries, with a special focus on key commodities like nickel, copper, and bauxite. The government's strategy is designed to maximize the value of Indonesia's resources, benefiting the nation's economy and workforce.

Takeaways

• 😀 President Prabowo Subianto emphasizes the continuation of the national resource-based industrialization program through 15 mega-projects starting in 2025, aiming for self-sufficiency and attracting foreign investment.
• 😀 The government's focus on resource utilization aims to enhance Indonesia's energy security and national wealth, while the industrialization process will be aligned with Indonesia's prosperity.
• 😀 The formation of the Task Force (Satgas) for Accelerating Industrialization and National Energy Security was formalized through Presidential Decree No. 1/2025, highlighting the importance of regulatory alignment.
• 😀 Satgas' role includes promoting 35 new industrialization projects worth $123.8 billion, with a specific focus on energy, mining, agriculture, and manufacturing sectors.
• 😀 The mining sector, especially nickel, copper, and bauxite, accounts for a significant portion of investment in industrialization, showing strong growth potential in Indonesia's resource-rich industries.
• 😀 Investment in industrialization reached a total of $171.4 trillion in 2024, with nearly a quarter of this amount directed at mining and related sectors.
• 😀 The government is keen to improve the overall investment climate, with regulations and investments in mineral processing and value-added resource utilization being critical for Indonesia’s growth.
• 😀 Satgas is working on ensuring efficient coordination across ministries and agencies, addressing bureaucratic hurdles to accelerate investment and minimize regulatory conflicts.
• 😀 Stakeholders like the Indonesian Mining Association and other experts believe the 35 new projects will attract significant foreign investment, especially with clear policy frameworks and improved coordination.
• 😀 Observers urge Satgas to focus on overcoming challenges such as policy overlap, resource efficiency, and human capital development to maintain the momentum of industrialization and ensure its long-term success.

Q & A

What is the primary focus of the Satgas Percepatan Hilirisasi dan Ketahanan Energi Nasional?

The primary focus of Satgas Percepatan Hilirisasi dan Ketahanan Energi Nasional is to accelerate the downstream processing of Indonesia's mineral resources and ensure national energy security. This involves creating a valid database for investors and promoting the utilization of Indonesia's natural resources to enhance the nation's economy.

How does President Prabowo Subianto view the continuation of the hilirisasi program?

President Prabowo Subianto emphasized that the government will continue the hilirisasi program started in the previous administration, with a focus on implementing 15 mega projects in 2025. He stated that Indonesia will rely on its own resources rather than asking for foreign investment, though it remains open to foreign investors.

What are the key factors that investors consider when selecting commodities for investment in Indonesia?

Investors consider several key factors, including the availability of resources, the potential for value-added products, market prospects, and the regulatory environment. Detailed information regarding resource reserves and regulatory support are essential for attracting investments.

What role does the Satgas play in the ongoing investment and hilirisasi efforts in Indonesia?

The Satgas plays a crucial role in identifying and offering investment opportunities related to hilirisasi. It has already prepared a list of 35 projects worth over $100 billion to attract investors, which include sectors such as minerals, coal, oil and gas, and agriculture.

What are the anticipated outcomes of the 35 hilirisasi projects offered by Satgas?

The 35 hilirisasi projects are expected to drive economic growth by enhancing energy security, creating value-added industries, and boosting Indonesia's investment portfolio, especially in the mineral sector. These projects are projected to attract significant foreign investment and contribute to the overall growth of Indonesia's economy.

How did the Indonesian government support the hilirisasi program financially?

The government supports hilirisasi through strategic financing and collaboration with domestic banks to provide funding for key projects. This ensures that the investment is driven locally, which helps in developing the national economy while promoting sustainability in resource use.

What challenges does the Satgas face in implementing the hilirisasi program?

One of the main challenges the Satgas faces is the coordination and alignment of regulations between various ministries and agencies. There are also concerns about overlapping policies, licensing issues, and the need to develop downstream industries and ecosystems, rather than just focusing on raw material processing.

What was the realisation of investment in hilirisasi during 2024?

In 2024, Indonesia saw a significant increase in investment, with a total of Rp407.8 trillion (about 23.8% of total investment), primarily focused on hilirisasi projects. A major portion of this investment went into the mineral sector, including nickel, copper, and bauxite projects.

What sectors are included in the 35 hilirisasi projects announced by the Satgas?

The 35 hilirisasi projects cover a broad range of sectors, including minerals (such as nickel and copper), coal, oil and gas, and agriculture, particularly focusing on the production of oleochemical products.

What are the expectations from Satgas in terms of regulatory coordination?

Satgas is expected to streamline coordination and resolve overlapping regulations between ministries and agencies. This will help reduce bureaucratic hurdles and ensure the smooth implementation of hilirisasi projects. Effective coordination is crucial to resolving licensing and legal issues that may delay the process.