Policy of downstreaming natural resources to bring positive impact on economy: Jokowi
Jakarta, The Gulf Observer: The policy of downstreaming natural resources will ultimately bring a positive impact on the nation’s economy, according to President Joko Widodo (Jokowi).
“This policy may be bitter for raw material exporters and for short-term state revenues. However, if the big ecosystem has been formed and the processing plant starts to operate, it will bring a positive impact in the end,” he remarked at the 2023 Annual Session of the People’s Consultative Assembly (MPR RI) and the 2023 Joint Session of the House of Representatives (DPR RI) and Regional Representative Council (DPD RI) in Jakarta on Wednesday.
The head of state noted that the policy of down streaming natural resources should be continued since it will bring benefits by improving the people’s welfare.
Jokowi highlighted that Indonesia is a country with abundant natural resources that should be able to manage its natural wealth to generate added value in the economy.
The country should not only rely on its natural resources but should also have the ability to process them, he stated.
“I emphasize that Indonesia must become a country with the ability to process its natural resources to provide added value and bring prosperity to its people,” he remarked.
Hence, the down streaming industry is needed to obtain added value from natural resources, Jokowi stated.
According to the president, the government had already implemented down streaming through technology transfer to utilize new and renewable energy sources while minimizing the environmental impacts.
He noted that the government had also obligated mining companies to build seedbeds to revive forests after becoming mining sites.
Apart from the down streaming of mineral commodities, the president is keen that Indonesia also conducts down streaming for commodities, such as palm oil, seaweed, coconut, and other potential commodities.
“It must optimize local sources and partner with farmers and fisheries MSMEs (micro, small, and medium enterprises) to bring real benefits to them,” he stated.
He also noted that downstreaming and the green economy can become an opportunity for Indonesia to achieve progress since the country has abundant natural resources.
