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Indonesia’s bauxite downstream sector attracted IDR 40.1 trillion in investment during the second quarter of 2026, surpassing the IDR 29.4 trillion invested in the nickel industry for the first time. 

According to the Indonesia Investment Coordinating Board (BKPM), the shift reflects growing domestic and foreign investment in bauxite processing projects as Indonesia broadens its downstream industrial strategy. 

Despite the quarterly milestone, nickel remained the largest downstream investment sector in the first half of 2026, totaling IDR 71 trillion, compared with IDR 53.8 trillion for bauxite. 

The government said it will continue expanding downstream development beyond nickel to include bauxite, palm oil, rubber, timber, silica sand, and the oil and gas sectors to enhance value-added manufacturing and strengthen industrial competitiveness.