President Jokowi Calls for Industry Downstreaming to Realize Indonesia’s 2045 Vision

President Joko “Jokowi” Widodo inspects a booth at an exhibition held by the Indonesian Employers Association (Apindo), Monday (07/31), in Jakarta. (Photo by: BPMI Presidential Secretariat)

Fostering the country’s robust industry downstreaming is a crucial step for Indonesia to become a developed country by 2045, according to President Joko “Jokowi” Widodo at the Inauguration of the National Leadership Council (DPN) of the Indonesian Employers Association (Apindo) for 2023-2028 period, at the Kempinski Hotel, Jakarta, Monday (07/31).

The World Bank, McKinsey, the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD have projected that if the downstreaming is carried out in all sectors starting from 2040 until 2045 and the program is successful, Indonesia can be a developed country.

According to the President, the downstreaming program has brought a number of positive impacts on the country’s economy, including massive employment opportunities.

“Central Sulawesi only recorded 1,800 workers involved in nickel processing prior to the downstreaming. However, the province currently has 71,500 workers because of the downstreaming,” he said.

The President went on to say that this program provides a significant contribution to state revenues. From 2014 to 2015, the Government profited Rp31 trillion from exports of raw materials.

“Once we carry out the downstreaming, the amount increased by Rp510 trillion. From US$2.1 billion jumped to US$33.8 billion. How many times did the number jump? This was only coming from a few derivatives,” he said.

The President also pointed out that the downstreaming also has a positive impact on regional economic growth and affects national economic growth as well.

“The economic growth in North Maluku previously was 5.7 percent on average, then it increased by 23 percent after the downstreaming. If all provinces experience the same positive growth, can you even imagine how the aggregate of all of them will impact our national economic growth?” he added.

On that occasion, the President underlined that the downstreaming program will not only be run in the mineral industry, but also in other sectors.

To that end, the President invited entrepreneurs to participate in supporting the downstreaming program.

“We must start. Apindo has to start thinking that way. We must start exporting semi-finished goods. The banking sector also must assist with the financial issues related to downstreaming in the fields I have mentioned earlier,” the President remarked. (FID/UN) (RIF/MMB)