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Selasa, 14 Mei 2024

In Australia, Minister of Investment Showcases Environmentally Friendly Weda Bay Downstreaming Worth US$12 Billion

Melbourne, May 14, 2024 – Minister of Investment/Head of the Ministry of Investment and Downstream Industry/BKPM, Bahlil Lahadalia, delivered a keynote speech at the Indonesia-Australia Business Summit (IABS) in Melbourne, Victoria, Australia, on Monday morning (May 13). The event was part of his three-day working visit to Melbourne. Bahlil emphasized the Indonesian Government’s commitment to building environmentally friendly industries in the future.

“If anyone says our industrial zones are not environmentally friendly, I invite you to visit the Weda Bay industrial area in North Maluku,” said Bahlil before approximately 150 Australian investors and companies.


Bahlil explained that the downstreaming activities at Weda Bay in North Maluku contribute to exports worth US$12 billion in the mineral downstreaming sector. “Everything there is already environmentally friendly,” he stated.


He highlighted Indonesia’s enormous potential for green investment. However, he noted a significant challenge: the low level of investor interest in green energy investments, particularly in developing countries. “Only one-fifth of green energy investments flow to developing countries, even though two-thirds of the world’s population live in these nations,” Bahlil said.


Bahlil further pointed out that the global market is increasingly demanding industrial products powered by clean energy, which means investors will only invest in countries with clean energy capabilities.


“The target of achieving carbon neutrality by 2060 is supported by clean energy storage systems, including batteries, which will begin operations by 2030,” Bahlil stated. He invited Australian investors to increase their investments in Indonesia, emphasizing the country’s serious commitment to green energy.


One of the participants of IABS 2024, Geoffrey Gold from the Australia Indonesia Business Council, expressed his appreciation for the forum. He was particularly impressed by the speakers, who instilled confidence in the Indonesian Government’s full support for Australian businesses interested in investing in Indonesia. Geoffrey also noted the significant business opportunities arising from the strong relationship between Australia and Indonesia, which fosters a comfortable environment for business collaboration.


“We are interested in the mining and mineral sectors for mutually beneficial cooperation. I hope both governments will support this. It is also expected that Indonesia will become more open to Australian investment, just as Australia is open to Indonesian investors,” said Geoffrey.


According to data from the Ministry of Investment and Downstream Industry/BKPM, Australian investment in Indonesia over the past five years, from 2019 to Q1 2024, totaled USD 1.96 billion. In 2023, Australia ranked as the 10th largest source of foreign direct investment (FDI) in Indonesia, with realized investments amounting to USD 0.5 billion. Similarly, 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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