Indonesia is setting its sights on becoming a global hub for sustainable industrial development, with an investment roadmap worth up to US$618 billion in downstream sectors by 2040. 

Addressing the ESG Forum 2025 on Monday, June 2, 2025, Deputy for Investment Implementation Control at the Ministry of Investment/Investment Coordinating Board (BKPM), Eddy Junaedi, said that the country’s economic strategy is now inseparable from environmental, social, and governance (ESG) principles.

He highlighted that President Prabowo Subianto’s medium-term development plan for 2025–2029 targets 8 percent annual economic growth and total investment of over Rp13,000 trillion. At the heart of this strategy is downstream industrialization − especially in mining and metal-based industries − which aims to add value to Indonesia’s natural resources while ensuring long-term sustainability.

Indonesia already leads the world in nickel production and ranks among the top producers of tin, bauxite, palm oil, and rubber. These resources are now being processed domestically into high-value products like electric vehicle (EV) batteries and stainless steel. Eddy cited that Indonesia’s goal is to become one of the world’s top five EV battery producers and the second-largest stainless steel exporter by 2040.

“ The country’s investment momentum is strong. In the first quarter of 2025, Indonesia recorded Rp465.2 trillion in investment realization − 24.4 percent of its annual target − with nearly 30 percent of that flowing into downstream sectors. This trend follows the ban on raw nickel exports under Law No. 3/2020, which spurred a rapid expansion of domestic processing. Today, 194 businesses are operating or in development, including 188 nickel smelters and six EV battery production facilities,” he said.

He, however, noted that growth must be paired with responsibility. “Environmental and social concerns are no longer just ideals − they are market requirements,” he said.

Global demand for sustainable, low-emission raw materials is reshaping investment priorities and compelling mining and industrial sectors to implement ESG-compliant practices.

To support this shift, the Indonesian government has introduced several policy instruments, including the Sustainable Investment Guidelines (SIG), launched at the G20 Summit in Bali in 2022. These guidelines, formalized in Ministerial Decree No. 223/2022, provide a national framework to help investors and businesses align with international sustainability standards.

“ESG is not just a policy checkbox − it is a strategic imperative,” Eddy emphasized.

He added that Indonesia’s mineral processing capacity plays a vital role in the global energy transition and in achieving the country’s 2060 net-zero emission target.

Closing his remarks, Eddy called for greater synergy between government agencies, businesses, and international partners. “Let us work together to build an investment climate that is competitive, inclusive, and sustainable. The ESG Forum 2025 should be a turning point in aligning investment with long-term environmental and economic goals,” he said.