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Jumat, 08 November 2024

Encouraging Downstream Development, Deputy Minister of Investment and Downstream Industry Visits South Sumatera to Discuss Strategies for Economic Value Addition

Palembang, November 8, 2024 – Deputy Minister of Investment and Downstream Industry/Deputy Chairman of the Investment Coordinating Board (BKPM) Todotua Pasaribu emphasizes the importance of downstream industry development to increase the value added of South Sumatera’s abundant natural resources. This was conveyed during his work visit to Palembang, South Sumatera on Tuesday (6/11).

During that one-day visit, Deputy Minister of Investment and Downstream Industry Todotua Pasaribu held a Coordination Meeting between the South Sumatera Provincial Government and related Ministries/Agencies regarding the Development of the Palembang New Port, alongside a Consolidation Meeting between the South Sumatera Provincial Government and the Capital Investment and One Stop Service Agency (DPMPTSP) from provincial, district, and city levels across South Sumatera.


Todotua Pasaribu explained that with the nomenclature addition that became the Ministry of Investment and Downstream Industry/BKPM, the downstream sector has firmly become a priority of President Prabowo’s administration for the next five years. To carry out this directive, among the most important were cross-Ministry/Agency coordination with the local government and supportive infrastructure.


"To drive investment, to push for the downstream development process, there needs to be a strategic logistics supply chain for ports, strategy on cheap energy sources, strategy on raw material source proximity," Pasaribu stated.


He said that these strategic steps would help enhance the competitiveness of the downstream industry, expedite the processing of raw materials into value-added products, and support the establishment of a sustainable industrial ecosystem. Furthermore, Pasaribu stated his commitment to take an active role in cross-ministry coordination to ensure the construction of strategic ports that could bolster downstream efforts in South Sumatera.


"I will ensure full support and cross-ministerial coordination to achieve success in constructing this port," he added.


The development of the Palembang New Port at Tanjung Carat has been designated as a National Strategic Project (PSN) under Coordinating Ministry For Economic Affairs Regulation No. 12/2024. The port and area of Tanjung Carat are expected to become a major logistics distribution and infrastructure connectivity hub that plays a crucial role in strengthening economic integration, be they at national or international level. Moreover, this port was planned to be a driving force for the natural resources export from South Sumatera, which simultaneously act as a catalyst for economic growth and prosperity in the Southern Sumatera region.


At the same event, Acting Governor of South Sumatera Elen Setiadi mentioned that the region’s economy was currently still dominated by raw material exports.


"In terms of economic growth, we are sometimes above the national average, but it could be even higher if we could derive more value added from available resources," he said.


The completion of Tanjung Carat Port construction in Palembang is expected to be the key to establishing a downstream industry in South Sumatera. The construction of Tanjung Carat Port continues going through progress, with the acceleration of primary land certification covering 60 hectares and supporting land in Mosaic 5 and 6, each covering 80 hectares.


Setiadi also expressed hope that the port and its supporting area can be proposed and granted Special Economic Zone (SEZ) status remembering the nonexisting SEZ in South Sumatera, particularly one dedicated to SEZ Downstream Strategy.


Boosting Economic Growth with Downstream Investment and One Stop Services


Nearly all Heads of Agencies or DPMPTSP representatives from across South Sumatera attended the Consolidation Meeting led by the Acting Governor of South Sumatera. During this meeting, Setiadi conveyed the region’s investment achievements, which are dominated by realization of Domestic Direct Investment (DDI) amounting to Rp 26.58 trillion and FDI (Foreign Direct Investment) at Rp 13.85 trillion, with an annual investment growth rate of 9.92%.


At the same time, Todotua Pasaribu also highlighted the crucial role of Agency heads and DPMPTSP in ensuring that incoming investments actually impacted regional economic development. With ever-increasing investment realization targets, Pasaribu emphasized the importance of the downstream development concept utilization to optimize South Sumatera’s economic potential as a strategic province.


"There are three key concepts for economic growth: first is downstream investment, second is digitalization, and third is sustainable economic concepts, as ladies/gentlemen present here are our vanguard in the one-stop services process, to me, the main key factor is indeed sorted out here," explained Pasaribu.


This meeting also provided an opportunity for DPMPTSP representatives from various regions to express the issues and challenges they face. This forum is expected to serve as a starting point for addressing investment barriers and enhancing service quality for investors.(*)


For further information, contact:

Ahmad Faisal Suralaga

Head of Communication and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

Email: humas@bkpm.go.id


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