Jakarta (ANTARA) – The pandemic must not stop the ongoing transformations in Indonesia in terms of the switch to value-added economic activities (downstream), green energy development, and the digital economy, President Joko Widodo (Jokowi) has said. “Our major transformations in the country must keep going. First, we are accelerating economic transformation toward an economy with high added value,” he said at the 67th anniversary commemoration of Parahyangan Catholic University, Bandung, West Java on Monday.
The first transformation being pursued by the government is redirecting raw materials from export to downstream industries in order to produce value-added exports, he elaborated. Since the colonial era, exports from the country have always been in the form of raw goods, he noted.
The exports of raw goods do not provide optimal benefits to Indonesia because they do not produce an economic multiplier effect for the community and the country, he explained. “This year, we will stop bauxite exports. Next year, we will also stop exporting copper raw materials,” he said. Indonesia has stopped exporting nickel raw materials since 2020, he added.
“We want to have added value in our exported goods to generate more state revenue in the form of taxes, royalties, non-tax state revenue (PNPB), and also to provide job opportunities for our people,” the President explained.
The second sector that is being transformed is green economy development. The global market, in the next few years, will only be interested in products made by the green industry, he added. “This (green products) will have high demand in a global market that is environmentally friendly. It will become a new culture, supported by the green ecosystem in the world,” he said.
According to Jokowi, Indonesia has a wealth of renewable energy of up to 418 gigawatts, ranging from energy produced through hydropower, underwater capture, geothermal, wind, and other sources.
“We have a lot of green energy. We have 4,400 rivers. The Mamberamo River in Papua can produce 23 thousand megawatts and the Kayan River in North Kalimantan with 11 thousand megawatts. We have sufficient capital for green energy,” he emphasized.
The third transformation is the development of the digital economy, the President said. “We are pursuing the transformation of the digital economy, building a digital society, and building digital government. We have great potential in this digital sector, and our digital market is growing rapidly compared to other ASEAN countries. In 2025, we predict that the value of our digital economy will increase to US$146 billion,” he projected.
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