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Senin, 13 Mei 2024

Encouraging Australian Investors to Collaborate, Minister of Investment Reaffirms Indonesia's Commitment to Downstreaming

Melbourne, May 13, 2024 – Speaking before Australian business leaders, Minister of Investment/Head of the Ministry of Investment and Downstream Industry/BKPM, Bahlil Lahadalia, reiterated Indonesia’s strong commitment to promoting downstreaming. The statement was delivered during his keynote address at the Indonesia-Australia Business Summit (IABS) 2024 held in Melbourne, Australia, on Monday morning (May 13). In addition to offering collaboration opportunities, Bahlil emphasized that the Indonesian Government has a solid commitment to advancing the transition toward sustainable development.

Bahlil noted that while diplomatic relations between Indonesia and Australia have been strong, the investment cooperation between the two countries has not yet reached its full potential. Over the past five years (2019–2024), Australia’s realized investment in Indonesia amounted to USD 1.96 billion. Bahlil suggested that Indonesia and Australia could collaborate in developing the electric vehicle (EV) battery industry, as both countries possess nickel resources. Additionally, Indonesia has cobalt and manganese, while Australia holds lithium reserves.


“I am confident that the relationship between Indonesia and Australia can be further strengthened. In terms of investment, we must acknowledge that it has not yet reached its full potential. If the two countries collaborate, it could create a new powerhouse in the EV battery industry,” Bahlil stated.


The Minister also emphasized the government’s focus on downstreaming. Under President Joko Widodo’s administration, Indonesia no longer exports raw commodities for processing abroad but ensures they are processed domestically. Since the government banned nickel exports in 2020, Indonesia has witnessed a significant increase in the export value of nickel derivatives, rising from USD 3.3 billion in 2017 to USD 33.8 billion in 2022.


“We have already begun the journey (of downstreaming). Like an airplane, we have taken off, and no country can command us to turn back. We will continue to progress as global dynamics evolve,” Bahlil emphasized.


The Minister also highlighted that Indonesia’s downstreaming initiatives are environmentally conscious and could serve as a model for other nations. He invited investors to visit the Weda Bay Industrial Estate in North Maluku to observe the environmentally friendly industrial area firsthand.


The IABS 2024 event, themed “Green Horizons and Golden Opportunities: Forging a Sustainable Future Together,” marked its 10th year as a premier forum connecting Indonesian and Australian business communities. Key speakers at the event included Bank Indonesia Deputy Governor Doni P. Joewono, PT Bank HSBC Indonesia President Director Francois De Maricourt, and Austrade General Manager for Investment Peter Horn.


According to data from the Ministry of Investment and Downstream Industry/BKPM, Australian investment in Indonesia over the past five years (2019–2024) amounted to USD 1.96 billion. In 2023, Australia ranked as the 10th largest source of foreign direct investment (FDI) for Indonesia, with realized investments of USD 0.5 billion. In Q1 2024, Australia remained in the 10th position, with realized investments of USD 172.3 million. The three main sectors contributing to Australian investment in Indonesia were mining (65.4%), hotels and restaurants (7.6%), and other services (6.4%).


For further information, please contact:

Ricky Kusmayadi

Head of Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: rickykusmayadi@bkpm.go.id

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