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RI highlights natural resources, green energy as investment drivers

Jakarta (ANTARA) – Sectors linked to natural resources and renewable energy remain central to Indonesia’s appeal among global investors, Deputy Minister of Investment and Downstreaming Todotua Pasaribu emphasized.Speaking in Jakarta on Thursday, he noted Indonesia’s extensive wealth across minerals, oil and gas, agriculture, forestry, and the maritime sector—industries that continue to attract significant capital inflows. Pasaribu explained that the government’s downstreaming policy, which focuses on processing resources domestically before export, has added considerable value to Indonesia’s natural wealth. “The implementation of downstreaming has contributed significantly to investment and boosted the value of our resources,” he said. He added that strong investment trends in industry and manufacturing typically generate rising demand across the supply chain, which in turn channels capital into logistics. “Growth in industrialization and manufacturing will definitely stimulate growth in logistics,” Pasaribu remarked. Turning to renewable energy, he underlined Indonesia’s vast potential in converting solar and geothermal resources into electricity, estimating a capacity of around 3,700 gigawatts. This, he said, strengthens the country’s attractiveness for eco-friendly energy development. Despite these advantages, Pasaribu acknowledged challenges in maintaining a competitive and sustainable investment climate. “Our resources must not be burdened with processing costs above international levels. This remains a major concern for us,” he stressed. His comments came in response to questions about Indonesia’s recent trade agreement with the United States. Last week, both countries signed the Agreement on Reciprocal Trade, exempting 1,819 Indonesian products—including palm oil, coffee, cocoa, spices, rubber, electronic components, and aircraft parts—from US import duties. A quota-based zero-tariff regime was also granted for textiles and garments, while other commodities remain subject to a 19 percent duty. However, a US Supreme Court ruling the following day blocked President Donald Trump’s reciprocal tariff plans, declaring them unconstitutional. Trump subsequently announced a sweeping 10 percent global tariff, with plans to raise it to 15 percent. In response, Indonesia’s Coordinating Ministry for Economic Affairs confirmed that further talks would be held to assess the ruling’s implications for the bilateral deal.