Downstreaming in Indonesia Needs to be Improved Comprehensively – 2024-07-28 07:46:01

Aerial photo of the nickel smelter location owned by PT Antam Tbk in Pomalaa District, Kolaka Regency, Southeast Sulawesi, (ANTARA FOTO/Andry Denisah)

THE downstreaming AGENDA carried out by the government is considered to need to be improved comprehensively and in-depth research conducted. The reason is, the downstreaming of Natural Resources (SDA) commodities carried out does not immediately raise the welfare of the surrounding community even though the economic level of the related region has increased rapidly.

“Downstreaming has produced high export performance of up to US$33 billion. But in terms of equality, it is lagging behind and not in the government’s attention and good planning. It must be fixed carefully and with in-depth research,” said senior economist and founder of the Institute for Development of Economics and Finance (Indef) Didik J. Rachbini when contacted, Thursday (25/7).

Specifically for nickel downstreaming, he continued, mining exploitation permits are mostly done for local companies. However, the existing nickel factories are actually controlled by China. Thus, foreign exchange from nickel downstreaming products is mostly pocketed by people or companies from the Bamboo Curtain Country.

Therefore, Didik said, the government must be able to fix the problem. The added value of the downstreaming that is carried out must be directed to be fully accepted and pocketed by Indonesia. “With the current pattern, Mr. Jusuf Kalla and Faisal Basri’s criticism is correct, there are more benefits for foreign companies,” he concluded. (Mir/Z-7)

#Downstreaming #Indonesia #Improved #Comprehensively

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