Impact of Foreign Investment (PMA) in Nickel Products to Economic Sector in Indonesia (2019-2023)

Abstract

According to Indonesian nickel downstreaming data on the BKPM website, in 2021 the Government started downstreaming with the aim of increasing the added value of Indonesia's abundant natural resources, such as nickel. According to the United States Geological Survey (USGS), of the 2.67 million tons of nickel produced worldwide, Indonesia produces 800 thousand tons of nickel. To support this downstreaming program, the Government is implementing a Foreign Investment (PMA) strategy for the economic sector. According to BPS data, PMA investment in the mining sector in 2019- 2023 experienced instability because every year there was a decrease or increase. In 2019 the recorded investment was 25,675.25, then in 2020 it decreased to 13,755.10. The following years, namely 2021-2023, continued to increase with the amount of investment recorded at 25,517.10 in 2021, continuing to 2022 at 62,521.60, and in 2023 with an increasing amount of investment at 86,689.20. Nickel exports in 2023 were considered the highest in approximately a decade, because they increased ten times. The rapid development in exports is the most valuable thing in the eyes of the world. Therefore, downstream projects must continue to be intensified so that domestic nickel processed products have a higher value.