Han Revanda Putra, Jakarta – Investment Minister/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, has acknowledged that local communities near mining operations have not reaped the benefits of downstreaming as expected. This was based on the result of his ongoing research.
"My research clearly shows that investors and the central government are currently the main beneficiaries of downstreaming," Bahlil said during a lecture at Paramadina University in South Jakarta on Saturday, July 27, 2024.
However, he refuted the notion that the government is at fault for this imbalance. He argued that the shortcomings of downstreaming would have remained hidden without the government's initiative.
Before President Joko Widodo or Jokowi's administration, Bahlil claimed that no government had dared to implement the Downstreaming Law, despite its existence since 2004. "After four years of implementation, we've identified areas we need to fix," he explained.
Thus, the former chairman of the Indonesian Young Entrepreneurs Association (HIPMI) announced the government's plan to reformulate policies to empower regions as both beneficiaries and active participants in downstreaming. Bahlil expected that downstreaming must be equitable and sustainable, both environmentally and industrially.
"Our goal is to establish a fair downstreaming system that maximizes benefits for the people, especially those living near mining sites," Bahlil emphasized.
During a public lecture at the Jatinangor Institute of Public Administration (IPDN) on Thursday, July 11, 2024, the minister candidly admitted that the current downstreaming process is not entirely fair. "I must be honest that downstreaming hasn't been 100 percent equitable," he declared.
He pointed out that investments in natural resource extraction inevitably impact local communities. Mining operations, such as those for nickel, copper, or coal, require land acquisition.
The Indonesian Environmental Forum (Walhi) has reported water pollution in the Weda Bay and Obi Island regions, which it attributes to the effects of nickel mining and downstreaming. The pollution has reportedly harmed marine life, including fish.