CSIS on Election Debate: Downstream Not Solution to All Problems

TEMPO.CO, Jakarta - A senior researcher at the Center for Strategic and International Studies (CSIS), Deni Friawan, responded to vice presidential candidate Gibran Rakabuming Raka’s statement during the fourth election debate on January 21, 2024. He agreed that Indonesia has abundant natural resources but a downstream program is not the solution to all of the country's problems.

“What was said by all vice presidential candidates is true that Indonesia has abundant natural resources, such as coal, palm oil, copper, nickel, and others,” Deni said as broadcast on the CSIS Indonesia’s YouTube channel on Monday, January 22.

However, Deni assessed that the government could not implement a downstream program or expand the ongoing downstream project to all the natural resource commodities as suggested by Gibran.

Deni argued that downstream is not an easy program and asserted that not all problems could be tackled by a downstream program. Having natural resources and downstream or industrialization of natural resources are two different things. While Indonesia is rich in natural resources, it could not necessarily benefit from them through downstream.

Based on a CSIS study, the possession of natural resources is not the key factor in the success of downstream industries, as there are other factors such as the availability of energy, infrastructure, sufficient human resources, and the market. 

“The most important thing that our government often forgets is the legal certainty. That’s what we don't have,” Deni said.

President Jokowi’s eldest son, Gibran Rakabuming, frequently mentioned the downstream program during Sunday’s televised debate, which focused on issues related to sustainable development, natural resources, the environment, energy, food, agriculture, indigenous communities, and villages.

IKHSAN RELIUBUN

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