Jayanty Nada Shofa, Jakarta – The government's push for mineral ore processing is set to give a major boost to Indonesia's economy with the country's per capita income predicted to reach $25,000 by 2045, President Joko "Jokowi" Widodo said on Wednesday.
The president has introduced economic strategies centering on the so-called "downstream" policy, in which the resource-rich country favors refining its commodities domestically over shipping them out unprocessed.
Indonesia stopped exporting unprocessed nickel ores in 2020, and Jokowi said that the decision had led to an influx of investment. According to him, Indonesia is now home to 43 nickel processing plants, thus a massive source of job opportunities.
Such a strategy does not stop with nickel. Southeast Asia's largest economy intends to replicate this strategy in other commodities, including bauxite, palm oil, coconut, and seaweed. As Indonesia moves closer to the 2024 presidential election, Jokowi wants his successor to carry the torch of this policy.
"If we are consistent with this policy, estimates show that Indonesia's per capita income will reach $10,900 in a decade. It will then hit $15,800 in the next 15 years, and eventually $25,000 million in 22 years from now," Jokowi said when delivering his annual state address in a joint session with the People's Consultative Assembly (MPR) in Jakarta on Wednesday.
According to World Bank data, Indonesia's gross national income per capita stood at $4,580 in 2022.
The president also told the assembly that the kind of downstream processing policy that Indonesia was aiming for was one that promotes technology transfers and the use of renewables. In non-mining sectors, the policy should also involve the local farmers and fishermen.
"We need to keep it up. It is a bitter pill to swallow for raw material exporters. It will likely take a toll on our state revenue in the short term. But once we have established the grand ecosystem and the processing plants begin operations, this will all bear fruits in the end," Jokowi said.
Jokowi added: "Our future lies in the hands of the next leadership."
Source: https://jakartaglobe.id/business/jokowi-aims-per-capita-income-to-hit-25000-in-2-decade