Downstream industry and energy transition will be the main program of the BUMN ministry in 2024. These two programs are considered to be able to make the Indonesian economy better and stronger.

State-Owned Company Minister (BUMN Minister) Erick Tohir said there are several strategic projects in the energy sector which will be the focus of BUMN's performance next year. This is important to increase added value for the country and maintain energy security.

"Next year we will continue national strategic projects, one of which is in terms of energy transition and downstreaming," said Erick at Commission VI DPR RI, Monday (4/12/2023).

Erick explained that the decarbonization program to reduce emissions will continue to be implemented in 2024. This is in line with the Indonesian government's commitment to the energy transition.

Second, downstream projects. Erick said, this downstream project is very important to increase the added value from raw materials to finished products.

Erick detailed that the electric vehicle battery industry is one of the efforts to downstream nickel. "IBC, a subsidiary of MIND ID and PLN and Pertamina, focuses on developing EV batteries. Yesterday we collaborated, 2.5 years of working together with CATL China, one of the largest battery producers in the world. We are already partners. This is a new industry for the future, so downstream "We can maximize nickel," added Erick.

Apart from that, BUMN will focus on completing refinery and smelter projects as one of the downstream instruments. Next year, one of Pertamina's major projects, the Balikpapan Refinery, will officially operate.

"Downstreaming, we encourage adding value from raw materials to build refineries and smelters that we encourage. Balikpapan refinery project can be completed in 2024. This is Pertamina's big project," said Erick.

Downstreaming is a process of sustainable economic transformation in which industrialization policies are based on high added value commodities, leading to a more complex economic structure.

The process of industrial downstreaming in Indonesia continues with the development of the battery industry supply chain and the North Kalimantan Industrial Zone (KIPI) will become a new source of growth for the Indonesian economy.

The potential added value of downstream bauxite, copper and tin can reach 3–180 times that of ore. Downstreaming of bauxite, copper and tin also supports the electric vehicle value chain.