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Sabtu, 11 Oktober 2025

Critical Minerals Downstreaming to Advance Indonesia’s Green Economy

Jakarta, 11 October 2025 – As part of the Indonesia International Sustainability Forum (ISF) 2025, a key panel session titled “Enhancing Downstreaming: Sustainable Investment in Critical Minerals Industries” highlighted Indonesia’s strategic role in promoting critical mineral downstreaming to support a sustainable global energy transition. The panel featured Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstream Industry/Indonesian Investment Coordinating Board (BKPM); Raelene Martin, Global Head of Sustainability at the International Chamber of Commerce; Tony Wenas, CEO of PT Freeport Indonesia; Utomo Nugroho, Director of Infrastructure and Operations at PT Krakatau Steel; and Walter Lin, Managing Director Asia at SEDEX. Ashwin Balasubramanian from McKinsey & Company moderated the session.

In his presentation, Nurul Ichwan emphasized that mineral downstreaming is Indonesia’s core strategy to strengthen its national economic structure and accelerate the transformation toward sustainable development. He underscored that the development of downstream industries must comply with international regulations, including the EU Carbon Border Adjustment Mechanism (CBAM) and policies on environmental and human-rights due diligence, to ensure global competitiveness. 


“The government is targeting over Rp3,800 trillion in investment over the next five years to develop downstream industries for 15 priority commodities, including nickel, copper, bauxite, and steel. Downstreaming is not merely about industrialization. It is also about creating sustainable economic value, supporting the energy transition, and reinforcing Indonesia’s position in the global supply chain,” said Nurul Ichwan. 


He added that critical minerals have become strategic assets in international economic diplomacy, requiring national policies to bridge the interests of resource-rich countries with those of technology and capital. The government also encourages the downstreaming process to be accompanied by good mining practices and the use of clean energy, ensuring a balance between economic growth and environmental sustainability. 


The panel explored Indonesia’s vast potential to enhance its downstream capacity for critical minerals, such as nickel, copper, bauxite, and rare earth metals. These minerals are crucial for developing electric vehicle (EV) ecosystems and renewable energy technologies. Speakers underlined the significance of policy consistency in light of global shifts in battery technology, particularly the rise of lithium iron phosphate (LFP) batteries, which may affect nickel competitiveness. On the other hand, Freeport Indonesia and Antam forged a strategic partnership initiative to supply 30–50 tons of domestic gold annually. This initiative was highlighted as a concrete step to strengthen domestic supply and increase economic value. 


The panel also emphasized the importance of data interoperability and global supply chain traceability, championed by the International Chamber of Commerce (ICC), to foster transparency, establish trust, and attract sustainable investment. Meanwhile, Krakatau Steel underscored the steel sector’s significant contribution to the national economy, noting that every dollar invested can generate up to 2.5 times the value within the supply chain and a 13 times multiplier effect in related sectors. Additionally, this creates substantial employment opportunities while adhering to environmental roadmaps. 


The government aims to achieve inclusive national economic growth of up to 8% through green-oriented mineral downstreaming, positioning Indonesia as a regional and global hub for sustainable investment. Collaboration between government, industry, and global partners is expected to enhance the value of Indonesia’s mineral resources, ensure responsible governance, and establish Indonesia as a key player in the green economy during the global energy transition. (*) 

 

For further Information, please contact: 

Protocol and Public Relations Bureau 

Ministry of Investment and Downstream Industry/BKPM 

Email: humas@bkpm.go.id 

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