Heaptalk, Jakarta — President Joko Widodo emphasized the importance of downstream in the energy and mineral resources sector as a critical strategy to increase domestic added value. This sector plays a strategic role and holds great potential to generate a multiplier effect for the national economy.
“We know from 2014 until today, the non-tax state revenue received by the country from the energy and mineral resources sector—meaning for ten years—is enormous, approximately Rp1,800 trillion. If we look at the last two years, in 2022, it was Rp348 trillion. In 2023, it was Rp229 trillion per year, which is also a huge amount,” said Jokowi during his remarks at the 79th Anniversary celebration of Mining and Energy held at the Grand Ballroom of Hotel Indonesia Kempinski, Jakarta, on Thursday (10/10).
President Jokowi also highlighted the importance of ensuring that the added value of ESDM commodities, such as copper, nickel, and coal, is created domestically through downstream programs. He stressed that Indonesia should no longer send raw materials abroad, benefiting recipient countries. He said, “We have been sending our raw materials abroad for over 400 years. They become rich and developed nations, but we cannot leap forward.”
On this occasion, Jokowi also discussed the impact of nickel downstream, which saw a significant leap from raw material export values of US$2.9 billion in 2020 to US$34.4 billion in 2023. He noted that this jump benefited companies, the country, and the people.
“If everything enters the industry, into downstream industries, state revenues will soar, and all of this can be used to build village roads, highways, new ports, new airports, for subsidies, and social assistance for our people,” he added.
The increase in domestic oil and gas production is also essential. That way, oil lifting should not be allowed to continue to decline, as it would increase imports and deplete the country’s foreign reserves. Jokowi said, “We must not allow our oil lifting to decrease by any amount, not even by a liter—it must rise, and every year it must rise.”
Additionally, Jokowi emphasized the importance of regulatory simplification to facilitate investment and exploration in the energy and mineral resources sector. Jokowi reiterated that faster countries will outperform slower ones. “It’s not the big countries that will beat the small ones, nor the rich countries that will beat the developing ones, but the fast countries that will beat the slow ones,” he concluded.
