As part of the effort, the Ministry of Investment/CBI (Coordinating Board of Investment) held the webinar "Downstream Industry as the Key to Optimize Indonesia’s Natural Resources" on Thursday (13/10/2022). They invited three speakers to share their thoughts, in which one of them was Prof. Ir. I Gede Wenten, M.Sc., Ph.D. (ITB Vice Rector of Research and Innovation). The webinar was streamed live through the ministry’s Youtube channel.

Numerous global dynamics that suddenly appear may threaten Indonesia’s economy. To anticipate the future of Indonesia’s economy, investment becomes a crucial method for economic recovery. Since 2020, the Ministry of Investment has halted the export of raw goods. The down-streaming scenario of natural resources is created to add value to goods from Indonesia.

Prof. Wenten explained that there are four main downstream industries: mining, agriculture, manufacturing, and marine. Despite being the main factor, the marine industry is rarely brought up in society. The seas of Indonesia store many essential minerals such as phosphorus and magnesium. In addition, the marine biomass industry is also being promoted recently through seaweed and algae which have a positive impact on climate change as well as support carbon capture and utilization.

Based on research and innovation in which Indonesia's economic ranking is estimated to be in the top 10 in 2045, the industry that will remain stable and sustainable is the marine industry. The government is in the middle of implementing the blue economy policy, yet it still revolves around the maritime axis, transportation, and fisheries. “This industry needs a technological upgrade,“ Prof. Wenten stated. “Down-streaming without technology is the same thing as falling into a trap.” One example of utilizing technology in this industry is the ocean farming revolution, which enabled the industry to cultivate fish, shellfish, and reefs in the same place.

Indonesia’s open seas are also known for their tourism. Hence, investment in the marine industry can be elevated with the development of nature-based industries like ocean farming and green energy.

Efforts in down-streaming have their challenges. Due to this, industrial collaboration with entrepreneurs in the country is encouraged so that the targets can be evenly distributed and create an Indonesia-centric system. This will improve the processing of natural resources and generate products with higher selling value.

Academic support in downstream industries is also necessary. The industry cannot run alone; it needs the support of business proponents and academics as the better blueprints of excellent human resources. Universities play an important role in strengthening the scientific capacity of research to produce new technological development, prop the national innovation system, and prepare future human resources.

“Investment is not just a matter of money- it is also a matter of knowledge. Encouraging investment to improve downstream industries requires knowledge based on research," Prof. Wenten added.

Reporter: Pravito Septadenova Dwi Ananta (Geological Engineering, 2019)
Translator: Ruth Nathania (Environmental Engineering, 2019)