The Indonesian government wants to make the country a key global player in the commodity-based downstream industry given its enormous natural resource potential.
The government is focusing commodity downstreaming on agro-based industries such as the oleochemical industry, and mineral-based industries such as the mineral and metal smelter industry.
The others are oil and gas and coal-based industries such as the coal-to-methanol project.
Indonesia has the world’s largest reserves of nickel. But the government is also increasing the downstreaming of leading mineral and metal-based commodities such as bauxite, tin, and nickel.
Refining and processing bauxite into aluminum end-products is expected to increase the national income from Rp21 trillion (US$1.3 billion to Rp62 trillion (US$4.1 billion)
Moreover, the downstreaming of tin metal is expected to produce rare earth metals, which are essential components for various current technologies. In the nickel sector, the government’s goal is to make Indonesia a center for electric vehicle battery production.
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