PRIME NEWS POST 

The INDONESIAN, (jakarta)
– Amid widespread uncertainty roiling the global economy, Indonesia is charting a distinct course. Realized investment in the first quarter of 2026 reached Rp498.79 trillion, rising 7.22% year-on-year, with nearly one-third—some Rp147.5 trillion—stemming from natural resource downstreaming. National economic growth also accelerated to 5.61%, underpinned by robust household consumption, significant investment expansion, and measured yet expansive government spending. As a civic body committed to national economic self-reliance, PROUI expresses full support for the downstreaming and investment policy direction pursued under President Prabowo Subianto’s administration.

We view downstreaming as no longer mere political rhetoric; it has evolved into a concrete, calibrated economic transformation strategy. Danantara, the state strategic investment management agency, has broken ground on more than a dozen downstream projects valued at billions of dollars, projected to employ hundreds of thousands of new workers. Notably, over 75% of these investments are located outside Java, primarily in Central Sulawesi and North Maluku. This stands as tangible proof that downstreaming delivers not only economic added value but also equitable development—a long-held national aspiration.

PROUI also commends President Prabowo’s consistency in advancing three key economic pillars in tandem: deregulation of licensing, accelerated downstreaming and industrialization, and a stable business environment. Policies requiring foreign investors to support downstreaming efforts and banning exports of unprocessed raw materials demonstrate the government’s resolve to end Indonesia’s role as a low-cost raw material supplier to other nations. Looking ahead, with targets of Rp13,000 trillion in investment and 8% economic growth over the five-year term, there is strong cause for optimism—provided all sectors of society sustain oversight and consistent implementation.

This support, however, comes with key notes. We urge downstreaming to move beyond basic processing toward genuine industrial deepening: technology transfer, domestic control of supply chains, and the creation of quality jobs for local workers, rather than relying on imported labor without accompanying skills transfer. We also emphasize the need for legal certainty for compliant investors, paired with firm enforcement against violations—consistent with recent government action in several mining cases. Balancing rigorous law enforcement with a conducive investment climate is critical to sustaining global market confidence.

We also highlight persistent structural challenges: Indonesia’s higher ICOR ratio compared to peers such as Vietnam signals room to improve investment efficiency, while a recent trade deficit—ending a streak of multi-month surpluses—requires urgent attention. These issues must be addressed so hard-won growth momentum is not derailed by external shocks.

PROUI believes Indonesia’s vision of economic self-reliance is achievable, provided downstreaming and investment policies are implemented consistently, transparently, and aligned with the long-term interests of all Indonesians, not narrow interests. We will continue to monitor and fully support President Prabowo Subianto’s efforts to elevate Indonesia—from a raw material exporter to a respected, high-value-added producing nation.

Reported from various media sources //photo from Google documents // contribution by Prime News Post international online media // news.paper
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