Economist Enrico Tanuwidjaja and junior Economist Agus Santoso at UOB Group assess the recent developments in the base metal industry in Indonesia.

Key Takeaways

“Indonesia has a large natural resources advantage contributing to its total exports. However, most commodities are exported in the form of raw materials, thus lacking in value-added. To answer for higher global demand and reap higher exports revenue in the imminent future, Indonesia must embark on increasing its down streaming capacity and capability, starting with the base metals.”

“The base metal industry is important in itself and furthermore, has a spillover effect to various sectors. Increasing demand for manufactured base metal commodities has led the government to expand downstream to various base metal commodities such as nickel, copper, bauxite and tin.”

“The government has prepared 3 strategic steps to encourage the implementation of downstream in Indonesia such as strengthening infrastructure, regulatory deregulations, and developing industrial ecosystems.”