TEMPO.CO, Jakarta - Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that many developed countries oppose Indonesia's downstreaming roadmap, which aims to transform raw materials into higher-value products. He attributes their resistance to the strategy's potential to disrupt the supply chains of raw materials previously exported to those nations. 

"Many developed countries are against Indonesia's downstreaming plan. They recognize Indonesia's comparative advantage in transforming resources, designing products, and maximizing value creation," Bahlil said at the Global Hydrogen Ecosystem Summit in Jakarta Convention Center on Tuesday, April 15.

Downstreaming, which is the process of converting raw materials into finished or semi-finished goods with greater economic value, is a cornerstone of Indonesia's strategy to boost its national economy and diversify its industrial ecosystem.

Bahlil, the former Minister of Investment, highlighted the success of downstreaming in the nickel sector. He noted that processed nickel exports have generated between US$34 billion and US$35 billion annually, a stark contrast to the US$3.3 billion earned from unprocessed nickel exports in 2018-2019.

"Downstreaming fosters new economic growth hubs. This is why the European Union challenged us at the World Trade Organization (WTO). We should not hesitate in pursuing our policy nor fear these countries," Bahlil asserted.

The Golkar Party chairman also noted global economic trends, observing that many world leaders are prioritizing domestic growth—a goal aligned with Indonesia's downstreaming strategy. "This approach bolsters our national economy and positions us competitively on the global stage," he added. 

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