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Minister of Industry applies a downstream-based industrialization policy

Jakarta, The Indonesia Post – The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita ensured that the government implemented a downstream-based industrialization policy that provided various benefits, both in the form of added industrial value, state revenue, and community welfare.

This is in line with President Jokowi’s statement at the Annual Session of the MPR RI and the Joint Session of the DPR RI and DPD RI in the framework of the 78th Anniversary of the Proclamation of Independence of the Republic of Indonesia, Wednesday, where the President said that Indonesia must be a country that is also capable of managing its resources, capable of provide added value, and prosper the people.

“In nickel downstream, the Ministry of Industry calculates the potential added value in the nickel smelter industry which can produce up to downstream products. Compared to the price of raw nickel ore which is US$30/ton, if it is processed to become MHP, the added value of this commodity can increase up to 120.94 times or reaching US$3,628/ton,” said the Minister of Industry in a statement in Jakarta, Wednesday.

To optimize the increase in added value by processing commodities into downstream products, the Ministry of Industry is taking steps to present the industry, including through promoting investment for downstream products including with fiscal and non-fiscal incentives, expanding international cooperation to fill new export markets, and strengthening negotiation capabilities. and positions in dealing with pressure from international trade and diplomacy.

In the agro-industrial sector, the Ministry of Industry is also working on downstream to produce innovative products that meet community needs, especially to support environmental sustainability.

For example, downstream oil palm commodities produce oleo food complexes, which are new healthy and nutritious modern food products. Then, the biomaterial complex which can also spur technology mastery and commercialization of new biomaterial industries for import substitution, as well as palm-based biofuels (biodiesel, green diesel, green fuel, biomass) as EBT fuels to reduce greenhouse gas emissions.

The manufacturing industry is also encouraged to take advantage of EBT to create a sustainable industry. In the records of the Ministry of Industry, several industrial estates have invested in providing electricity with EBT, both from hydroelectric power plants (PLTA), solar power plants (PLTS), and other EBT sources.

“The Ministry of Industry is working with various parties in developing an Eco Industrial Park (EIP) or an environmentally friendly industrial area which has important implications for environmental preservation in the industrial sector,” said the Minister of Industry.

To prepare human resources (HR) to support downstream operations, the Ministry of Industry is also accelerating the development of productive, competent and globally competitive industrial human resources in the digital transformation era.

By continuing to pay attention to technological developments and also dynamics in the international world, Indonesia must continue to adapt to the paradigm that is growing from time to time, including related to EBT and digitalization, to produce green products.

“Successful downstream requires support and cooperation from various parties to overcome existing challenges, such as the availability of infrastructure, energy, logistics, permits, fiscal facilities, and security,” said the Minister of Industry. (mhn/bbs)

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