The Downstreaming Industrial Policy (Hilirisasi) is a bold economic strategy that bans the export of raw minerals and requires domestic processing. It is transforming Indonesia from a raw material exporter into a global manufacturing hub, with nickel, copper, and bauxite at the center.[reference:7][reference:8]
The Strategy
Element
Description
Raw Material Ban
Export of unprocessed minerals is prohibited
Domestic Processing
Minerals must be processed in Indonesia
Value Addition
Creating higher-value products domestically
Investment
Attracting investment in processing facilities
The Key Commodities
Commodity
Role
Nickel
The centerpiece — Indonesia is the world’s largest nickel producer[reference:9]