Image Credits: The Jakarta Post
The Indonesian government is ramping up its commitment to both economic modernization and environmental sustainability by advancing its down streaming policy and green economy initiatives. This dual approach aims to bolster integration and connectivity within the ASEAN region.
Deputy Minister of Finance Suahasil Nazara underscored the significance of these efforts during his remarks at the 16th ASEAN and Asia Forum in Singapore on July 30. He emphasized that Indonesia is leveraging its down streaming policy not merely as a restriction on mineral resource exports but as a strategic move to enhance the value of domestically produced goods and expedite economic transformation.
“Down streaming is a key breakthrough for Indonesia,” Nazara stated. “It’s not just about banning the export of raw minerals but about creating additional value within our mineral and metal mining sectors. This policy is crucial for our economic future.”
Nazara highlighted that in the face of global supply chain disruptions and shifting economic strategies such as reshoring and friend shoring, Indonesia is choosing to focus on downstream processing as a means of adding value to its natural resources. The country’s abundant mineral wealth is expected to play a pivotal role in its economic development.
In addition to its down streaming policy, Indonesia is making significant strides in the green economy. Nazara pointed to various initiatives, including the Energy Transition Mechanism and the Indonesia Just Energy Transition Partnership, which are designed to facilitate the shift toward renewable energy sources. These efforts are part of a broader strategy to attract investments for the early retirement of coal-fired power plants and to promote the use of clean energy.
“Our commitment extends to meeting our Nationally Determined Contributions (NDC) by 2030 and achieving net zero emissions by 2060 or sooner,” Nazara affirmed. “We are actively working to fulfill these global promises by fostering a robust energy transition and creating a sustainable economic model.”
The Indonesian government’s proactive stance on these fronts underscores its dual focus on economic growth through enhanced domestic value chains and environmental stewardship.