10 July 2025 16:35
Photo: Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board, Todotua Pasaribu in the CNBC Indonesia Economic Update program.
Jakarta, CNBC Indonesia - Indonesia is intensifying its downstreaming (hilirisasi) efforts beyond nickel to include sectors such as coal, coconut, and seaweed, according to the Ministry of Investment and Downstreaming.
Following the success of nickel downstream development—which has significantly increased export value—the government is now redirecting focus to other natural-resource sectors to add value, create employment, and spur economic growth, particularly in rural and coastal areas.
Minister Rosan Roeslani emphasized that downstreaming isn’t only about minerals. He stated that Indonesia is actively creating value-added industries around coal, coconut, and seaweed. These efforts aim to boost income for small-scale farmers and producers by enabling them to participate in integrated industrial supply chains rather than just exporting raw commodities.
For example:
- Coal: Moving toward refined and industrial products.
- Coconut: Expanding processing into derivatives like coconut oil, activated carbon, and desiccated coconut.
- Seaweed: Unlocking massive economic potential beyond raw exports by producing agar, carrageenan, bioplastics, organic fertilizers, and nutraceuticals.
Seaweed is gaining particular attention due to its wide-reaching possibilities—which include uses in agriculture, health, cosmetics, biofuel, and packaging—offering a surge in added value and sustainability potential.
These initiatives align with a broader strategy to diversify Indonesia’s resource-driven economy. By encouraging processing and manufacturing within the country, the government seeks to capture greater value domestically, improve livelihoods, and support national resilience.