Minister Suharso Unveils National Priority Programmes in Downstreaming and Natural Resource-Based Industry
Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa revealed the national priority programmes in downstreaming and natural resource-based industries for 2025 in an FGD event organised by the Indonesian Economists Association (ISEI), Thursday (22/08/2024).
In his remarks, Minister Suharso emphasised the importance of downstreaming and the development of natural resource-based industries as one of the main focuses in the national development agenda.
Minister Suharso explained that this priority programme includes various strategic initiatives to advance the industrial sector in Indonesia, including the development of facilities and infrastructure that support priority industrial estates and special economic zones.
In addition, the development of downstream industries based on biological resources, such as palm oil, coconut, and seaweed, is also a major focus, and the development of medium and high-tech industries will play an important role in improving Indonesia’s competitiveness in the global market.
The minister added that the government has set four key indicators as measures of achievement. First, the Gross Domestic Product (GDP) ratio for the processing industry is targeted to reach 20.8% by 2025.
Second, logistics costs are expected to contribute 13.5% to GDP. Third, gross fixed capital formation is expected to range from 30.1% to 30.2% of GDP. Fourth, the contribution of exports of goods and services to GDP is targeted to be in the range of 21.0% to 21.6%.
To achieve these indicators, Minister Suharso outlined a number of strategic interventions. A focus on the downstreaming of key mineral-based industries, including nickel, copper and bauxite, to increase the added value of mineral resources is one of the interventions.
According to him, the government will also strengthen connectivity services with infrastructure development that integrates the economy more effectively. In addition, increasing private investment will be prioritised to drive economic transformation and accelerate industrial sector growth.
Finally, increased export-oriented investment will be encouraged to support Indonesia’s participation in global value chains. Lastly, the government will boost exports of high-tech industrial products to increase Indonesia’s global competitiveness.
Through these measures, the Minister hopes that Indonesia can achieve sustainable economic growth and improve the position of the national industry in the international arena. The event also served as a momentum to raise awareness of the importance of planning and implementing an integrated development strategy to achieve national development goals.
Source: Bappenas
