Nandito Putra, Jakarta – Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, views the practice of exporting raw materials, including mineral resources, as akin to the methods employed by the United East India Company (VOC) during the colonial era. Bahlil expressed this view while opening the Minerba Convex 2025 event at the Jakarta Convention Center (JCC) Senayan on Wednesday, October 15, 2025.
Bahlil argues that Indonesia only benefits other countries by exporting raw materials, since Indonesia does not enjoy the added value from processing. He stated, "In the past, during the VOC era, they took our raw materials, processed them abroad, and then sold them back to us. Are we going to use these old methods again? I say, stop. We must turn over a new leaf for the sake of the people and the nation," Bahlil said.
Bahlil claims that the government is committed to strengthening the downstreaming of minerals so that Indonesia's natural wealth provides added value domestically. Currently, the government is preparing 18 downstreaming projects to be undertaken by Danantara, with an investment value of US$18 billion or around Rp618 trillion.
He is optimistic that this step can create economic equality in the regions. "Our economy should not only grow in Jakarta, but also in the regions. The way to do this is through downstreaming," he said.
As an example, he highlighted the success of the nickel sector's downstreaming. The value of nickel exports increased significantly after the government banned the export of raw nickel ore and mandated its domestic processing. "The value of nickel exports has now reached US$35 billion to US$40 billion in 2023-2024, almost ten times higher than before the downstreaming," Bahlil said.
Although the government claims that downstreaming brings economic benefits, the policy has sparked criticism from several parties. The Secretary-General of the People's Coalition for Fisheries Justice (KIARA), Susan Herawati, believes that the downstreaming of nickel overlooks ecological safety and the rights of coastal and small island communities.
The expansion of nickel mining, primarily on small islands, has caused environmental damage and destroyed the habitats of coastal communities. "Small islands that should be protected are being mined under the guise of downstreaming. Yet, the sea and islands are the life support of traditional fishermen," Susan said in a written statement on Tuesday, June 10, 2025.
– Defara Dhanya contributed to this article