Commodity-based Economic Structure Must be Changed, President Jokowi Says

President Joko Widodo attends groundbreaking ceremony of electric vehicle battery factory PT HKML Battery Indonesia in Karawang regency, West Java province, on Wednesday morning (15/09/2021). (Photo: PR /Agung)

President Joko “Jokowi” Widodo emphasized that Indonesia should free itself from the trap of being raw materials exporting country immediately. The statement was made at the groundbreaking ceremony of electric vehicle battery factory PT HKML Battery Indonesia in Karawang regency, West Java province, on Wednesday morning (15/09/2021).

“Indonesia’s key business strategy is to free itself from the trap of being raw materials exporting country immediately and not to depend on imported products by speeding up the revitalization of processing industry. So, this strategy will give more added value to the economy,” he uttered.

Moreover, Indonesia should be committed to change the economic structure from commodity-based to downstream industry and industrialization. Indonesia should be a strong industrial country based on the development of technological innovation.

“The establishment of this factory is a proof of the Government’s seriousness in downstreaming the industry. The golden era of raw material commodities has ended and we should be committed to change economic structure from commodity-based to downstream industry,” he said.

The Head of State elaborated that Indonesia has the biggest nickel resource in the world. With that huge potential and supported by a good management, it is estimated that in the next three or four years, Indonesia will be a major manufacturer for nickel-based products, such as lithium battery, electrical battery, and electrical vehicle battery.

“Nickel downstream industry will increase added value of nickel ore significantly. If nickel ore is processed into battery cell, then it will increase the value six to seven times. And, if it is processed into electrical vehicle, the value will increase even more to eleven times,” he explained.

On the event, President Jokowi also reaffirmed the Government’s commitment to conduct structural reforms in order to improve the country’s ease of doing business.

“The Government will also encourage structural reforms to ensure legal certainty and  simpler licensing [process] for business owners and investors to develop their business in Indonesia. The Government will also welcome initiatives for cooperation with friendly countries,” he said. (TGH/UN) (AW/MMB)