Throughout 2024, realized foreign and domestic investment in hilirisasi - the government’s term for downstream industrialization of raw materials - reached Rp407.8 trillion. Four provinces became the main locations of hilirisasi projects, all situated outside Java.

The total realized investment value of Rp407.8 trillion accounted for 23.8% of the total investment in 2024. The largest share, Rp241.8 trillion (59%), was outside Java - in Central Sulawesi, North Maluku, West Nusa Tenggara (NTB), and Riau.

The main hilirisasi commodities developed in these four provinces were diverse: in Central Sulawesi and North Maluku, the focus was on nickel; in NTB, copper; and in Riau, the development of crude palm oil (CPO) production.

This development pattern of hilirisasi appears to have shifted somewhat in 2025. In Q1–2025, total realized investment in hilirisasi amounted to Rp136.3 trillion, or 29.3% of total investment.

However, among the five main locations, the portion of hilirisasi realization outside Java shrank to around 36%, worth Rp48.68 trillion, concentrated in Central Sulawesi and North Maluku. Meanwhile, a significant share of hilirisasi was located in Java—specifically in West Java, East Java, and Banten—with Rp31.5 trillion (23%) in realized investment.

The development of hilirisasi investment outside Java can essentially be viewed as the government’s strong commitment to creating new economic centers in resource-rich provinces. The regions whose economies expand due to hilirisasi projects will also absorb more labor.

Therefore, the government must refocus its efforts on attracting investors to commit capital into hilirisasi sectors outside Java.