Illustrative photo (Photo: business-indonesia.org)Jakarta (VNA) – Indonesia’s Investment MinisterBahlil Lahadalia on December 11 affirmed that the policy for the refinery industry– a process known locally as “downstreaming” including sectors that apply thesustainable principle, is key to achieving Indonesia's investment target of 1.65quadrillion rupiahs (around 105.67 billion USD) in 2024.
He said that is the country's policy direction in encouragingeconomic growth above 5%. The Indonesian government's policy direction, in thecontext of investment, will mainly focus on downstreaming.
He stated that although the current conditions of globaluncertainty are influencing investors' decisions to invest, Indonesia hasstrategic factors to be able to compete globally to attract investment.
Those factors are political, legal, and economic stability;adaptive and progressive policies towards the improvement of the investmentclimate; the potential of human resources, both in terms of labour availabilityand markets; and the potential of downstreaming abundant natural resources.
He noted that the existing geopolitical dynamics have causedrecessions and crises in various parts of the world. Hence, sustainableinvestment that can encourage more inclusive, fair, and equitable developmentis deemed necessary.
To achieve the goal, the Indonesian government is focusing onthe development of industries that are environmentally friendly and utilise newand renewable energy, Bahlil said.
It is also necessary for Indonesia's abundant natural resourcesto be managed wisely and sustainably through downstreaming andindustrialisation to provide maximum added value for the nation's interests,for instance, by increasing exports, generating foreign exchange, increasingstate income, and boosting economic growth.
Downstreaming can also support the achievement of sustainabledevelopment goals (SDGs), especially regarding the creation of decent jobs,climate change mitigation, and the alleviation of poverty and inequality.
Bahlil explained that Indonesia has the world's biggest CO2storage potential, so investors can build the downstream process using new andrenewable energy while still contributing to efforts to reduce emissionsthrough carbon capture, utilisation, and storage (CCUS) technology.
He ensured that Indonesia will oversee investment from upstreamto downstream, especially in the priority sectors, starting from the promotionof investment, the issuance of business licenses and various incentives,financial closing, construction, to commercial production.
Indonesia’s InvestmentMinistry has created a roadmap with a potential of 545.3 billion USD throughoutthe 2023–2035 period for 21 commodities from eight priority sectors, namely minerals, coal, oil, natural gas, plantations, fisheries, maritime, andforestry.
From January to September2023, the ministry recorded that investment in the downstream industrial sectorreached 266 trillion rupiahs, or 25.3% of the totalinvestment in the country./.
