Jakarta (ANTARA) - The policy of downstreaming, or processing raw materials into high value-added products, will be a priority program of the next government, according to the Ministry of Investment.
"It has been prepared since the era of President Joko Widodo and by God willing, the downstream (industry) will be one of the priorities (of the next government) under President-elect Prabowo Subianto," the ministry's Deputy for Investment Climate Development, Riyatno, said during the Investortrust Future Forum here on Wednesday.
He added that the next government's commitment to advancing downstreaming arises from the fact that the policy has generated many benefits for the Indonesian economy.
For instance, the downstreaming of nickel to nickel sulfate provides an added value of 11.4 times. The added value increases by 19.4 times when it is sold as a precursor, and climbs by 67.7 times when it is used in battery cells of electric vehicles (EV).
Riyatno further said that to maintain a sustainable downstreaming ecosystem, the Ministry of Investment has implemented several strategies, including issuing supporting regulations, tax incentives, and encouraging financial sector policies.
The strategies further include issuing regulations prohibiting the exports of raw materials for nickel, bauxite, copper, and tin.
"One of the tax incentives managed by the Ministry of Investment are tax holidays and tax allowances. Then there is also support from the Financial Services Authority (OJK) by issuing policies in the banking industry to support the acceleration program for battery-based electric motor vehicles, for example," he said.
Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Aditya Eko Sigit Wicaksono
