Jakarta, The Indonesia Post – President Joko Widodo emphasized that the people must have the courage to remind the next leader to continue downstreaming in all fields.
This was stated by the President in his remarks at the inauguration of the 2023-2026 Indonesian Christian Youth Movement (GAMKI) DPP and the inauguration of the 2023 GAMKI National Working Meeting, in Medan, North Sumatra, Saturday.
“So don’t export raw materials, later please remind the future leaders not to export raw materials, the people must have the courage to remind them about that,” President Jokowi exclaimed as witnessed via a live YouTube video from the Presidential Secretariat from Jakarta.
On this occasion, the President for the umpteenth time reminded the importance of downstreaming in all fields. Downstreaming is an effort to turn raw materials into semi-finished goods, or finished goods before being exported.
President Widodo emphasized that for more than 400 years, since the VOC (Vereenigde Oostindische Compagnie) era, the Indonesian nation has always exported raw materials.
Even though they get money from the export of raw materials, the amount is very small.
He again gave the example of downstream nickel which has been successfully carried out by the current government. Prior to downstreaming for the 2020 period, downstream nickel only provided a profit of IDR 32 trillion in one year. After downstreaming, profits have multiplied to IDR 510 trillion.
Jokowi emphasized that the state obtains royalties and taxes from the exporting company. On the other hand, by downstreaming, jobs are opened in the country.
“Because the state from nickel once again gets VAT for value added tax, gets company PPh, gets employee PPh, gets royalties, gets non-tax state revenue, gets export duties, gets a lot,” he said.
“And specifically like Freeport, because we are the largest shareholder, we still get more dividends, so that’s called downstream,” he added.
The Head of State gave the example he presented just from the nickel commodity side. According to him, the state’s profits will be greater if downstream is also carried out for other commodities, such as bauxite, copper, tin, coal and even non-mining commodities such as palm oil/CPO, seaweed to raw fish and others.
However, Jokowi said all of this requires cohesiveness, unity, and the strength of all components of the nation. He also asked GAMKI to always appear at the forefront to become a locomotive for the nation’s development in various fields. (mhn/bbs)
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