Riani Sanusi Putri, Danar Trivasya Fikri, Jakarta – President Joko "Jokowi" Widodo emphasized that downstream industry enforced by the government strives to minimize environmental impact and conduct technology transfer by utilizing new and renewable energy. Thus, mining companies ought to prioritize environmental-friendly principles.
"The government has obliged mining companies to establish seedbed centers for post-mining reforestation," he said during the annual session of MPR and the joint session of DPR and DPD on Wednesday, August 16, 2023.
Jokowi mentioned that Indonesia's downstream industry also targets non-mineral commodities in addition to mineral commodities, such as palm oil, seaweed, coconut, and other potential commodities.
He claimed the government prioritizes commodities partnering with MSMEs, farmers, and fishermen, ensuring a direct benefit for the common citizens. "This is what we are doing and will continue to do so," Jokowi said.
Meanwhile, Indonesia has banned the export of raw mineral materials dating back to January 2020 with the raw nickel export ban. Gradually, the government will also put a ban on other mineral materials, including the recent export ban on bauxite ore in June 2023.
However, the implementation of the export ban on raw minerals is not exactly smooth sailing. Further, the government is also dealing with the illegal export of mining commodities.
Downstream is a strategy to export half-finished products instead of raw materials. The strategy is intended to add value to exported commodities, strengthen the industrial structure, and increase the opportunity for domestic industries.