DIGIVESTASI - Nickel Downstreaming Program Successfully Increases Indonesia's Revenue. The Ministry of Investment or the Investment Coordinating Board (BKPM) reported that the nickel downstreaming program initiated by President Joko Widodo (Jokowi) has generated significant added value. Minister of Investment/Head of BKPM, Bahlil Lahadalia, revealed that Indonesia stands to gain US$ 33.5 billion or equivalent to Rp 542.06 trillion by 2023, a figure that jumps compared to the period before downstreaming.

"By stopping the export of raw nickel and building a domestic industry, the export value from nickel downstreaming in 2023 will reach US$ 33.5 billion," Bahlil explained in a public lecture at the Institute of Domestic Government (IPDN), which was broadcast online on Monday (15/7/2024).

He added that in 2017-2018, revenue from raw nickel exports only reached US$3.3 billion (around Rp 53.35 trillion). "We first encouraged downstreaming in October 2019, and since then we have stopped nickel exports to Europe," he said.

Bahlil sees downstreaming as one of the steps towards the vision of a "Golden Indonesia," with President Jokowi stressing the need for comprehensive investment measures in the sector.

Jokowi also previously noted that the export value of downstream nickel has exceeded Rp 500 trillion, a significant leap from the previous figure of only US$ 3.3 billion.

"We used to export raw nickel without smelters, with a value of around Rp 30 trillion per year. After the smelter was built, our export value jumped to Rp 500 trillion," Jokowi explained, underlining that this increase not only benefits the company, but also increases state revenue through taxes and royalties.

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