Mineral Downstreaming Projected to Attract $20 Billion in Investments
Main Takeaways
|
JAKARTA, Investortrust.id — Indonesia’s ambitious push to process its mineral wealth at home is expected to attract as much as $20 billion in investment over the next five years, as the government positions downstreaming as a pillar of energy resilience and economic expansion.
Coordinating Minister for Economic Affairs Airlangga Hartarto said mineral and coal downstreaming is vital to achieving Indonesia’s annual economic growth target of 8% and meeting its net zero emissions goal by 2060.
“In President Prabowo’s national agenda, Asta Cita, energy independence and downstreaming are key priorities. These two strategies are central to our coal sector,” Airlangga said in a statement on Saturday, Aug. 2, 2025.
The government aims to attract Rp 13,000 trillion ($827 billion) in total investment between 2025 and 2029, with mineral downstreaming expected to contribute $20 billion. These large-scale projects are anticipated to boost the manufacturing sector and create broad-based employment opportunities.
Airlangga also highlighted the development of a green energy ecosystem, which includes solar panels, electric vehicle (EV) batteries, and silica processing for solar and semiconductor components.
This broader industrial shift, according to government projections, could raise Indonesia’s exports by as much as $850 billion and lift gross domestic product by $236 billion by 2040.
MIND ID Drives Bauxite-to-Aluminum Integration
State mining holding company PT Mineral Industri Indonesia (MIND ID) has reaffirmed its strategic role in leading downstream initiatives across the national mining sector.
“Downstreaming is a mandate that guides all of MIND ID’s strategic initiatives. Along with our subsidiaries, we are committed to ensuring every program delivers maximum benefit for economic growth,” said Pria Utama, Corporate Secretary of MIND ID.
One major effort currently underway is the conversion of bauxite into aluminum, a key component of Indonesia’s industrialization strategy.
Under MIND ID’s integrated approach, bauxite is mined, refined into Smelter Grade Alumina (SGA), and then processed into aluminum. This full value chain not only supports the domestic economy but also significantly boosts the commodity’s market value.
A ton of raw bauxite worth approximately $40 can be transformed into alumina valued at $575, and further processed into aluminum worth around $2,700 per ton.
Analyze commodity trends and investment opportunities effortlessly with InvestingPro — enjoy an exclusive discount for Investortrust readers.