Political Memory, Economic Sovereignty, and New Dependencies

Indonesia's Downstreaming and Energy Transition in the Midst of Foreign Investment

Abstract

This article examines how of political memory shapes downstreaming policies and Indonesia’s energy transition. Existing studies on downstreaming mainly emphasize political economy, industrialization, foreign investment, and geopolitical competition over strategic minerals. However, the historical experience of colonial extraction and long-term economic dependence also plays an important role in shaping contemporary energy policy. This study argues that Indonesia’s downstreaming and energy transition agendas are driven by economic growth and industrial objectives, but also by collective memories of Indonesia’s historical role as a global raw material supplier. The study uses a qualitative interpretive approach through document analysis of presidential speeches, downstreaming regulations, Energy Law, the RPJMN, and other official state documents on energy and strategic minerals. The findings demonstrate that narratives such as “energy sovereignty,” “downstreaming,” and “raw material export bans” symbolize state efforts to escape colonial extractive structures. Downstreaming is framed as both a historical correction and a source of national pride within the green energy transition. Nevertheless, Indonesia’s green industrialization remains heavily dependent on foreign investment and technology, particularly from China, revealing the paradox between resource nationalism and contemporary global dependency.