President Jokowi Orders Banking to Monitor Downstream Policy

President Jokowi in Mandiri Investment Forum of 2023, at the Ballroom of Fairmont Hotel, Jakarta, on Wednesday (02/01). (Photo: PR Office of Cabinet Secretariat/Oji)

President Joko “Jokowi” Widodo ordered banking to support and monitor industrial downstreaming carried out by the Government.

It was conveyed by President Jokowi in his remarks in Mandiri Investment Forum of 2023, at the Ballroom of Fairmont Hotel, Jakarta, Wednesday (02/01).

“I would also like to ask you, Ladies and Gentlemen, to monitor this downstream policy. The banks monitor this policy. How? If anyone applies for credits to build a smelter, approve it,” he stated.

President Jokowi also expressed hope that banking would not impede the credit granting for businesses that support the downstreaming since it will give real benefits to the state and credit grantors.

Furthermore, the President emphasized that consistency in the downstreaming is the key to make Indonesia an advanced country. Therefore, he always reminded all his ranks to carry on the downstream policy although other countries oppose the policy.

“I told the ministers in every meeting not to hesitate, we will continue to carry out the downstreaming. We are sued in the WTO, and lost, but we will carry on, because, for our country, this will make a developing country to be a developed country,” he explained.

President Jokowi said that industrial downstreaming would give huge added value for Indonesia. The President gave an example of nickel ore export ban policy, which was implemented since January 2020 and then followed by nickel downstreaming, had been able to increase the nickel export value significantly from US$1.1 billion up to US$30-33 billion in 2022.

“Imagine, from about Rp17 trillion, the value rose to Rp450 trillion. It was a huge added value,” he stated.

After downstreaming, the next step is to build a big ecosystem that integrates the downstreaming of the country’s commodities, such as electric vehicle ecosystem, including the batteries for electric vehicle.

“If we can build the big ecosystem, integrate nickel with copper, bauxite, and tin from different islands, we can produce EV battery, lithium battery. From that only, I cannot imagine how much the added value will be,” he remarked.

Attending the forum were Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan, Minister of Economic Affairs Airlangga Hartarto, Minister of State-Owned Enterprises Erick Thohir, and President Director of Bank Mandiri Darmawan Junaidi.  (FID/UN)(AW/HD/MMB)