News - Downstreaming is the Ninja Way to a Golden Indonesia 2045

Downstreaming is the Ninja Way to a Golden Indonesia 2045

Jul, 12 2024

Sumedang: Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that downstreaming is one of the ways to create a source of state income to realize the goal of a Golden Indonesia in 2045.

"So when I entered the government, President Jokowi immediately ordered us to immediately think of measurable comprehensive steps to realize investment in the downstream sector," Bahlil said in a public lecture at the Institute of Domestic Government (IPDN) in Sumedang, West Java, Thursday, July 11, 2024.

Bahlil said the creation of added value is important to increase state revenues. Prior to downstreaming, nickel exports in 2017 only reached USD3.3 billion.

Meanwhile, in 2023 or after downstreaming is implemented, the figure increases significantly to USD33.8 billion. This figure only comes from one to two nickel derivatives, not including Electric Vehicle (EV) batteries and electric cars.

"In 2023, our export value from nickel downstreaming will reach USD33.8 billion. Up 10 times in just four to five years," he said.

Investors must cooperate with MSMEs

Furthermore, he revealed, his party has made a design for downstreaming both in the oil and gas sector, minerals and coal, plantations, fisheries, forestry and agriculture.

"We create added value here, so as to create jobs. If jobs are created, downstreaming is built, state revenues rise, wages rise, salaries for civil servants also rise," Bahlil said.

Therefore, Bahlil said, his party has encouraged that every investment that enters the region must collaborate with entrepreneurs and MSMEs in the region.

"Regional people must be masters in their own country, not spectators. Please guide your friends who have just finished school to become entrepreneurs so that they can develop the regions and their economy can be controlled by themselves," Bahlil said.

Meanwhile, IPDN Rector Hadi Prabowo revealed that downstreaming is a sustainable economic transformation process based on high value-added commodities to enter a more complex economic structure.

"Downstreaming is expected to increase productivity, added value, so that we can be able to increase the value of the industrial supply chain then we can protect our commodities from price fluctuations then we can reach the top of the industrial tree and of course support the strength of the domestic economy," said Hadi.

(SOURCE)

Cirebon Investment Reaches Rp2.25 Trillion by August 2025

INILAHCIREBON.ID, – The Cirebon Regency Government, West Java, recorded an investment realization of Rp2.25 trillion by August 2025. This figure is equivalent to 65 percent of the annual target of Rp3.2 trillion. The Head of the Cirebon Regency Investment and Integrated Services Agency (DPMPTSP), Hilmi Rivai, said that this achievement was quite encouraging. However, he emphasized that there was still a lot of work to be done to actually reach the target. "The investment realization is already Rp2.25 trillion or 65 percent of the target. We are optimistic that we can reach Rp3.2 trillion by the end of the year," said Hilmi in Cirebon on Tuesday (2/9/2025). Footwear Factory Becomes Main Pillar Hilmi explained that the majority of investments are still supported by the footwear industry. Many investors, including local entrepreneurs, are investing capital through the construction of new factories and expansion of production capacity. This labor-intensive sector is considered the driving force behind investment in Cirebon Regency because it is able to absorb a large workforce. “The labor-intensive industry is still showing a positive trend. Investors see Cirebon as quite potential,” said Hilmi. Encouraging Quality Investment Furthermore, Hilmi emphasized the importance of a long-term strategy so that investment does not only pursue quantity but also quality. The local government, he said, is committed to creating a business climate that is friendly to investment while providing tangible benefits to the community. “Without fundamental reforms, the realization of investment will only be a statistical achievement that does not touch the welfare of the community,” he said. Accelerating Services and Digitalization To support this, the Cirebon Regional Government has accelerated licensing services with a digital system. Investors also receive assistance from the planning stage until the permit is completed. In addition to the footwear industry, the local government has begun to expand the promotion of other sectors such as tourism, modern agriculture, and the creative industry. “We want the investments that come in to not only be large in terms of numbers, but also sustainable and have an impact on the community,” said Hilmi. [SOURCE]

Dec, 03 2025

Patimban Port Becomes a Magnet for Hong Kong Investors Targeting Subang

Investors from Hong Kong, one of the world’s major global financial hubs, have begun turning their attention to a strategic location in West Java: Subang. During the business forum “Indonesia Infrastructure Transformation - Unlocking Cross Border Investment Opportunities” held on Wednesday, PT Suryacipta Swadaya presented the reasons why Subang has become a strategic answer to the evolving dynamics of the global supply chain. Capital flows from Hong Kong to Indonesia represent the second largest source of Foreign Direct Investment (FDI) for Indonesia, reaching a value of USD 35.5 billion. Investors are increasingly seeking industrial ecosystems that are ready to operate quickly and efficiently. This trend has been captured by Suryacipta through the development of the Subang Smartpolitan industrial area. Suryacipta’s Chief Commercial Officer, Abednego Purnomo, emphasized that Indonesia’s industrial transformation has entered a new phase where speed has become a key currency in investment decisions. Modern industrial estates no longer simply provide land but also offer full integration between logistics, digital infrastructure, and energy transition. With strong regulatory synergy and well-prepared infrastructure, the time required to realize investments can now be significantly shortened. One of Subang’s strongest attractions is its proximity to Patimban Port, which is projected to become one of the largest automotive ports in Indonesia. The port is expected to serve as a key catalyst for the metal and automotive industries, two sectors that dominate investment interest from Hong Kong. This development aligns with Indonesia’s national ambition to reduce logistics costs from 23 percent of GDP to only 8 percent by 2045. In this context, Subang Smartpolitan is positioned as the heart of connectivity, linking manufacturing activities directly to international trade gateways. For multinational companies based in Hong Kong, Environmental, Social, and Governance (ESG) standards are essential. Subang Smartpolitan addresses this demand through the concept of a “Green, Smart, and Sustainable City.” Selecting industrial partners with strong supply chain networks is also a crucial factor in optimizing long-term operational efficiency. Through the implementation of Internet of Things (IoT) technologies, businesses in the area can monitor sustainability commitments and track net-zero emission targets more effectively. Hong Kong also acts as a Super-Connector for mainland Chinese companies seeking to diversify their production bases to Southeast Asia. Amid intense competition with neighboring countries for foreign investment, Indonesia—through Subang—offers a compelling combination of operational certainty, logistics proximity, and future-ready infrastructure. With major companies such as BYD establishing operations in Subang, the relocation trend is expected to accelerate further, positioning the Subang industrial corridor as a new symbol of Indonesia’s industrial strength on the global stage. [Source]

Mar, 11 2026

The Toll Road in West Java Consumes Rp12.91 Trillion in Investment Funds, Turns Out It Have Workshop Facilities

LENGKONG, AYOBANDUNG.COM - This toll road in West Java offers different facilities from most other toll roads. The track of the most recent toll road, which was inaugurated by President Jokowi in section 4. The Cibitung-Cilincing Toll Road does not only have rest area facilities. There are other functional places that are modified to support economic connectivity in the area. So do not be surprised if this toll road takes an investment fund of Rp12.91 trillion. It turns out that this toll road in West Java has a logistics area to help logistics distribution. In addition, the wide toll road track area, also makes a workshop area for containers to the warehouse is also on this toll road. This toll road also has a washing area for containers. The Cibitung-Cilincing Toll Road in West Java also has a modern warehouse and parking area for cars or large trucks. There are workshop facilities and container washing facilities on this toll road. For motorists who cross this toll road, not only will they rest, but they can also take advantage of other supporting facilities. The logistics area on the West Java toll road is 40 hectares, which is located at KM 16.5, if the driver is from the Cibitung area. The length of the track from Cibitung to Cilincing is 7.7 kilometers. Section I has a length of 2.96 kilometers, with a point from Cibitung to Telaga Asih. Meanwhile, the section II route from Telaga Asih to Gabus reaches 9.41 kilometers. Then for section III which is the longest section of this toll road, which is 13.09 kilometers long. Thus the information we shared about toll roads in West Java that were built with unique facilities. SOURCE

Aug, 01 2024

Green Light from BKSL, LPCK, and DMAS: Dedi Mulyadi Revokes Moratorium on Housing Permits

West Java Governor Dedi Mulyadi has signaled that he will reopen the housing development permit market. This is a positive signal for property companies listed on the Indonesia Stock Exchange (IDX). In a recent statement, Dedi stated that the moratorium on housing permits will be lifted starting in February 2026. Furthermore, the revocation will be carried out gradually and selectively based on recommendations from academic studies from IPB University and the Bandung Institute of Technology (ITB). He also explained that the moratorium stipulated in Governor's Circular Letter No. 180/2025 remains in effect. However, the West Java Provincial Government is currently mapping areas that are ecologically viable for development without triggering flooding. "I have asked IPB and ITB to conduct a study to determine which areas are suitable for housing based on existing spatial planning and existing housing developments. Recommendations will be issued gradually starting in February," said Dedi Mulyadi after a dialogue with the developer association and the Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, as quoted on Friday (January 23). Several property issuers have exposure to West Java, including PT Sentul City Tbk (BKSL), PT Kentanix Supra International Tbk (KSIX), PT Puradelta Lestari Tbk (DMAS), PT Ciputra Development Tbk (CTRA), and PT Metropolitan Land Tbk (MTLA). BKSL, for example, is developing the Sentul City independent development in Bogor, featuring several residential and commercial projects, such as Arcadia Residence & Square, Spring Residence, Spring Valley Extension, and Spring Garden. Phintraco Sekuritas recommends investors interested in investing in BKSL shares with short-term targets of 150, 160, and 170. Meanwhile, DMAS is developing Kota Deltamas, an approximately 3,200-hectare development in Central Cikarang, Bekasi, which integrates industrial, residential, commercial, and public facilities. CTRA is developing Citra City Sentul (Citra Sentul Raya) in Bogor, a township spanning approximately 400 hectares. D'Origin Advisory recommends that investors interested in acquiring CTRA shares enter when the price reaches 890, with a target price of 945 and 1,050. Meanwhile, KSIX has several projects in West Java, particularly in Bogor. These include Grand Nusa Indah (GNI) in Cileungsi, Adhigana, and Permata Nusa Indah Situsari, located in Bogor. MTLA, the company has several projects in West Java, including Metland Transyogi (Cileungsi, Bogor), Metland Cileungsi, Metland Cibitung, Metland Cikarang, and most recently, Metland Kertajati (Majalengka). The Lippo Group is also developing housing in Bekasi Regency through PT Lippo Cikarang Tbk (LPCK). LPCK's sentiment also stems from the Ministry of Housing's plan to turn the Meikarta area, developed by Lippo, into subsidized apartments. Basis for Issuing Housing Permits Dedi explained that the results of the study will form the basis for the government to undertake a large-scale transition in housing locations, including shifting from landed housing development patterns to vertical housing. He openly stated that the frequent flooding in West Java is a consequence of uncontrolled land conversion for housing. "Regarding housing development, we know that the current flooding mostly occurs in residential areas. Are we going to allow this flooding to worsen? There must be a solution. Areas prone to flooding should no longer be developed as residential areas," he said. This policy, Dedi continued, will serve as a selection process for developers. In the future, only developers with the capacity to build vertical housing (apartments or flats) will survive in urban areas like Bandung. Although the study's recommendations will be released in February, Dedi provided A stern warning issued that certain areas must remain off-limits to concrete under any circumstances, in order to preserve the ecology. "Absolutely not. No rice fields, no swamps, no cliffs, no riverbanks," he said. Furthermore, Dedi emphasized that developers will also be required to obtain a recommendation from the Regional Disaster Management Agency (BPBD) before issuing permits. Dedi also reminded those who have already received permits that President Prabowo Subianto's policy, reinforced by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), prohibits land conversion for development. [SOURCE]

Jan, 26 2026

PT PII Guarantees the Legok Nangka TPPASR Project, West Java

The West Java Provincial Government, through PT Jabar Environmental Solutions (JES), officially signed a guarantee agreement with PT Penjaminan Infrastruktur Indonesia (Persero) or PT PII on Thursday (June 4, 2026) for the Legok Nangka Regional Waste Processing and Final Disposal Site (TPPASR) project. This guarantee from PT PII aims to boost investor confidence in infrastructure projects in the environmental sector, which are known to be highly complex both technically and financially, as reported by Suara. Providing this guarantee is a crucial strategy to strengthen the project's viability in the eyes of banks. The scheme is expected to attract private sector involvement in developing sustainable waste management infrastructure in the region. The Legok Nangka TPPASR Public-Private Partnership (PPP) project marks a new milestone in PT PII's portfolio. This signing marks the first PPP project in 2026 and is the first waste sector project to receive a guarantee from the institution. "This project can reduce waste generation, improve the quality of waste management services, and create added value from the conversion of waste into energy," explained Andre Permana, Acting President Director of PT PII. The Legok Nangka Waste Management Facility (TPPASR) is designed to accommodate and process waste from various areas, including Bandung City, Bandung Regency, Cimahi City, West Bandung Regency, Garut Regency, and Sumedang Regency. The total capacity of this infrastructure is capable of reaching 2,131 tons per day. The local government hopes that this project will address the crucial issue of regional waste accumulation. This new infrastructure is projected to be a long-term solution to the limited capacity faced by existing final disposal facilities. "I appreciate PT PII's role in providing a government guarantee for this project, as this provides a strong foundation to ensure the project runs according to its commitments," said Dedi Mulyadi, Governor of West Java. The application of waste-to-energy technology at the Legok Nangka TPPASR is claimed to reduce waste volume by up to 85 percent. In addition to reducing waste accumulation, this modern facility is also projected to produce up to 40.79 MW of electricity for the Greater Bandung area and its surroundings. [SOURCE]

Jun, 12 2026

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