Jakarta, The Indonesia Post – Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the downstream policy made Indonesia respected by the world because downstreaming is an instrument for developing countries to become developed countries.
This was conveyed by Bahlil in his Scientific Oration: Economic Transformation Through Downstreaming with Local Wisdom in front of more than 1,000 students of the Sepuluh Nopember Institute of Technology (ITS) Surabaya, Tuesday.
“We are facing a nickel ban lawsuit at the WTO. We also initiated the Bali Compendium at the G20 TIIMM (Trade, Investment, and Industry Ministerial Meeting) yesterday so that G20 countries agree on the importance of downstreaming to encourage added value. We must encourage Indonesia not only to be known as a tourist destination. With this downstream, Indonesia is increasingly respected,” he said.
Bahlil also said that downstreaming is an effort to develop sustainable industries that have been proven to have an impact on economic growth, job creation, and increase state income. The government is making serious efforts to encourage downstreaming in the creation of added value of natural resources, for example through the construction of a copper smelter by PT Freeport Indonesia (PT FI) in Gresik, East Java.
Furthermore, Bahlil also emphasized the importance of collaboration between downstream industry players and national entrepreneurs in the regions. It is intended that regional entrepreneurs become hosts in their own regions and get the maximum benefit from their natural resources. Through downstreaming, Bahlil explained that one of the goals is to create new centers of economic growth in the regions.
Meanwhile, Chairman of the Board & CEO of Freeport Mc-MoRan Richard C. Adkerson in his speech also expressed his pride for Freeport-McMoRan’s contribution through PT FI which has been operating in Indonesia since 1972 until now the mine in Papua has been fully operated by Indonesian citizens. Richard also explained that the construction of a copper smelter in Gresik, East Java is a form of PT FI’s commitment to the Indonesian government.
“It does require a large capital, but the construction of this smelter is an honor because it is the largest single line smelter that processes 1.7 million tons of copper concentrate per year. The benefits of this smelter are far greater than just investment, but also create jobs and community development Opportunities in the mining sector for the future are also still open, “explained Richard. With the same passion to support downstreaming, ITS Chancellor Mochamad Ashari added that currently ITS has designed and produced long boats for use on the Mamberamo River, Papua Province as well as two-wheeled electric vehicles using solar power for use in mountainous areas in Papua. Papuans.
“ITS is proud to have contributed to various groups, including Papua. Including the development of the modern city of Kuala Kencana which is managed by PT Freeport Indonesia,” said Ashari. On this occasion, a Memorandum of Understanding was also signed between the Ministry of Investment/BKPM and ITS which was signed directly by the Minister of Investment/Head of BKPM and ITS Chancellor, as well as a Memorandum of Understanding between PT FI and ITS witnessed by the Minister of Investment/Head of BKPM. (mhn/bbs)
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