The base metals, metal goods, and machinery sector emerged as the largest contributor to investment, with Rp238.4 trillion, or 13.9% of the total. This sector’s growth highlights Indonesia’s industrial transformation and its focus on building a robust manufacturing base.

Despite the impressive figures, challenges remain. Analysts caution that the reliance on nickel and other minerals could expose the economy to global price fluctuations. Additionally, environmental concerns related to mining and smelting activities need to be addressed to ensure sustainable growth.

As Indonesia continues to push its downstream agenda, the focus will be on balancing economic growth with environmental sustainability. The success of these investments will determine the country’s ability to achieve its long-term goals of industrialization, job creation, and global competitiveness in the resource sector. (Uki Ruknuddin)

YouTube player