Effective Downstream Policy Strategies for Oil, Gas, and Mining Sub-Sectors in Indonesia

The policy of downstream in oil, gas, and mining sub-sectors, in this report including minerals and coal, is the Indonesian government’s primary focus to optimize its natural resources utilization. This report evaluates the downstream stages from the non[1]renewables resources using the Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) methodology and the concept of trickle-down effects. Its objective is to assess the external factors influencing downstream policies in Indonesia. Through the PESTEL framework, this report identifies the political, economic, social, technological, environmental, and legal aspects affecting downstream policies. Trickle-down effects are analyzed to understand the distribution of monetary benefits. The results indicate significant economic growth, social inequality, and environmental sustainability impact. In the oil and gas sub-sector, policies supporting technological investment and human capacity enhancement are needed. In the mineral sub-sector, industry involvement and environmental regulations need to be strengthened. In the coal sub-sector, economic diversification and the use of clean energy are key to reducing environmental impacts. The implication is the need for holistic policy strategies considering economic, social, and environmental aspects. Collaboration between the government and stakeholders is crucial for implementing policies that can sustainably enhance the added value of natural resources sustainably and ensure fair distribution of benefits.