Hilirisasi dan Masa Depan Indonesia

Summary

Indonesia is rich in natural resources, including the world's largest nickel reserves and being the second-largest producer of seaweed. However, simply possessing these resources isn't enough. The key is downstreaming—processing raw materials to add value and benefit society. This process can stimulate economic growth, create jobs, and increase state revenue. The government is focused on accelerating downstreaming across various sectors, including agriculture, maritime, and digital industries. By investing in technology, skills development, and youth empowerment, Indonesia aims to ensure equitable prosperity for all through a fair downstreaming approach that includes all stakeholders, from farmers to MSMEs.

Takeaways

• 😀 Indonesia is blessed with extraordinary natural resources, including the largest nickel reserves in the world and the second-largest tin reserves.
• 😀 Just having abundant natural resources is not enough; the real challenge is processing these resources to create maximum value for society.
• 😀 Downstreaming, or local processing of raw materials, is key to increasing value and ensuring prosperity for Indonesia.
• 😀 Indonesia was once the third-largest exporter of bauxite, but now ranks lower in solar panel exports, despite the high value-added potential of processed bauxite.
• 😀 Downstreaming is not limited to minerals—it can also apply to agriculture, maritime, plantations, and even digital sectors.
• 😀 Downstreaming can create job opportunities, stimulate the economy, and generate state revenue through taxes, royalties, dividends, and exports.
• 😀 Other countries successfully import raw materials, process them, and export finished products, often to the countries from which the raw materials originated. Indonesia should follow this model to capture more value.
• 😀 The 1945 Constitution mandates that Indonesia’s natural resources be controlled by the state and used for the benefit of the people, a principle central to the country’s downstreaming policy.
• 😀 The government has mapped out 28 leading commodities, with the potential to generate over IDR 13,000 trillion by 2040, driving the downstreaming agenda forward.
• 😀 Investment, technology, and workforce skill development are essential for the successful implementation of downstreaming, with a special focus on young people and vocational education.
• 😀 Fair downstreaming is the goal—ensuring that farmers, MSMEs, and local communities benefit from value-added production, leading to better prices, dynamic economies, and regional development.
• 😀 Despite the challenges of implementing downstreaming, optimism and collective effort will eventually lead to significant progress for the country.

Q & A

What is the significance of Indonesia's natural resources?

Indonesia is rich in natural resources, with the largest nickel reserves in the world and the second-largest team reserves globally. The country is also the world's second-largest producer of seaweed, among other valuable resources.

Why is simply having natural resources not enough for Indonesia?

While Indonesia has abundant natural resources, the challenge lies in processing these resources to maximize their value for society. This involves turning raw materials into finished products that benefit the economy.

What example is provided to explain the value of processing natural resources?

The example of bauxite is used, where unprocessed bauxite is exported, but when it is turned into solar panels, its value increases by 194 times.

How does downstreaming benefit Indonesia beyond the raw materials sector?

Downstreaming is not limited to minerals or coal. It can also apply to agriculture, maritime industries, plantations, and even the digital sector, creating value across various fields.

What is the role of downstreaming in adding value to raw materials?

Downstreaming involves processing raw materials into products that have added value, such as turning tea leaves into packaged, aromatic tea. This increases profit, creates jobs, and generates state revenue through taxes and exports.

How do other countries benefit from downstreaming despite lacking natural resources?

Countries without natural resources import raw materials, process them, and export finished products. They gain profits from the value-added process, even exporting back to the countries of origin of those resources.

What is the Indonesian government's stance on natural resources and downstreaming?

The government believes that natural resources should be controlled by the state and used for the prosperity of the people, as stated in the 1945 Constitution. Downstreaming is seen as a crucial strategy for achieving this goal.

How is Indonesia planning to accelerate downstreaming by 2040?

The government has mapped 28 key commodities that could generate over IDR 13,000 trillion by 2040. A task force has been formed to expedite downstreaming, with investment projections reaching 407 trillion IDR in 2024.

What role does education and workforce skill development play in Indonesia's downstreaming efforts?

To support downstreaming, Indonesia is focusing on developing education and vocational training to equip young people with skills in science, technology, engineering, mathematics, and AI, ensuring a skilled workforce for the industry.

How does downstreaming contribute to social and economic equity in Indonesia?

Downstreaming aims to create fair opportunities by involving various sectors such as farmers, livestock breeders, MSMEs, and young people. It helps improve prices for farmers, provides collaboration opportunities for MSMEs, and opens up job opportunities, ultimately driving local economic growth.