Indonesia, India Forge Partnership in Global Supply Chain Through Downstreaming

Indonesia is prioritizing the downstreaming of commodities, particularly minerals and coal, in a move aimed at enhancing the value of the nation’s natural resources and fostering a stronger national economy.

This initiative, according to Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is not only an economic imperative, but also presents substantial opportunities for international collaboration, notably with India.

 Minister Bahlil made these statements after accompanying President Prabowo in New Delhi, on Saturday (25/1).

Downstreaming, as explained by Minister Bahlil, goes beyond simply adding value to domestic commodities. It encompasses the creation of jobs and the acceleration of the manufacturing sector based on the country’s natural resources. The goal is to transition from exporting raw materials to exporting value-added products, thus yielding greater benefits for the national economy. This strategic shift also opens doors for partnerships with countries like India, which Minister Bahlil considers a key partner in the global supply chain.

Bahlil has highlighted Indonesia’s position as a leading global producer of strategic minerals and the opportunity for India to support the downstreaming of coal and to invest in critical minerals such as nickel, which is crucial for the development of electric vehicle batteries.

“Cooperation in the nickel downstreaming sector is very strategic for both countries. Indonesia can become a production center for electric vehicle batteries, while India acts as a key partner in the global supply chain,” Minister Bahlil stated.

This collaboration is expected to expedite the development of mineral and energy-based industries in Indonesia, and allow the strengthening of domestic industries through technology transfer and improved human resource capabilities.

This partnership is not just about economic gains; it is also about reinforcing Indonesia’s role as a major player in the global supply chain. Through consistent downstreaming policies, Bahlil is confident that Indonesia will achieve long-term positive impacts on its economy, as well as strengthen the bilateral ties between the two countries.

The collaboration with India is seen as a golden opportunity to accelerate Indonesia’s economic transformation.