Downstreaming of natural resources is a “game-changer” for Indonesia’s sustainable economic development, Bank Indonesia’s (BI) Deputy Governor Dody Budi Waluyo said on 20/1. Waluyo explained that FDI in natural resources downstreaming industries has increased significantly since 2017 up to the second half of 2022, which was followed by the ever-increasing amount of smelters. Waluyo noted that Indonesia currently faces challenges in downstreaming natural resources as he claimed that the mineral reserve is depleting and is getting scarcer. He elaborated that Indonesia’s mineral reserve such as nickel may deplete by 76,8% during 2021 to 2030, while other minerals such as bauxite may deplete by 8,6%, coal by 15,3%, and tin 34,5%. Waluyo highlighted that Indonesia’s position in the dynamics of global economy has caused Indonesia to stop exporting its natural resources commodities. However, he claimed that such position slows down the development of natural resources downstreaming in the country, despite of Indonesia having a prospective raw natural resources potential. BI and the government are drafting policies to support natural resources downstreaming, namely fiscal and non-fiscal incentives, investment policies, and implementing the state budget for purchasing locally-made goods. (Kompas, Kontan) (ICE GIACARTA)

Fonte notizia: Kompas.com - 30 January 2023