Indonesian President Prabowo Subianto is betting big on downstream industries to fuel his country’s economic future.
Prabowo, who took office a month ago, has announced a bold target: USD 600bn in investment to transform the country’s natural resources into high-value products. He calls it a cornerstone of his vision for “Golden Indonesia 2045,” marking the country’s centennial.
“We invite foreign investors to come and participate,” Prabowo said during a speech at the Asia-Pacific Economic Cooperation (APEC) CEO summit in Lima, Peru.
He outlined plans to develop 26 key commodities, spanning renewable energy, fisheries, and mining, as part of Indonesia’s downstream industrialization strategy, known locally as hilirisasi.
But as Prabowo courts international backers, analysts have raised concerns about the potential environmental and social impacts, regulatory consistency, and challenges in sustaining local benefits.
For Indonesia, downstream has become a buzzword for economic transformation in Southeast Asia’s largest country. By processing raw materials domestically – whether it’s refining nickel into ferronickel (an alloy of iron and nickel used to make stainless steel), or producing cosmetics using palm oil – the government hopes to reduce its reliance on commodity exports and strengthen its industrial base.
