Indonesia Leverages Downstream Strategy to Navigate Global Geopolitical Turmoil, Minister Says
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JAKARTA, Investortrust.id — Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has reaffirmed the country’s commitment to its downstream industrial strategy, calling it essential for weathering mounting geopolitical uncertainties and accelerating national energy resilience.
Speaking at the Jakarta Geopolitical Forum IX hosted by the National Resilience Institute (Lemhannas) on Tuesday, June 24, 2025, Bahlil said that escalating and unpredictable global dynamics—shaped by shifting alliances and rising protectionism—have undercut prospects for coordinated global economic recovery.
"Many countries that once embraced multilateral cooperation are now prioritizing national interests. This shift has led to a correction in global economic growth," Bahlil said during his keynote address.
He emphasized that the global energy transition away from fossil fuels toward renewables is further complicating the landscape, demanding stronger domestic capacity and resource optimization.
“We must identify and maximize our comparative advantages, especially in natural resources, to build national resilience,” Bahlil said. “This is not about choosing side A or side B—it’s about ensuring mutually beneficial cooperation for our energy security.”
The minister underlined that President Prabowo Subianto’s administration is doubling down on downstream development—or hilirisasi—as a central pillar of its broader economic transformation. The policy seeks to shift the economy away from consumption-led growth toward production and industrial value addition.
“Indonesia is crafting a roadmap to implement downstream processing across all commodity sectors,” he said. “And from my discussions with ministers in advanced economies, no country has achieved industrial success without active state involvement.”
Bahlil’s remarks come as the government intensifies its focus on strategic commodities such as nickel, bauxite, copper, coal, and palm oil—part of its vision to create energy independence and new manufacturing capacity, especially in critical sectors like battery and green energy production.