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All Journal Nation State : Journal of International Studies
Muhamad Takhim
Islamic Economics Study Program, Faculty of Economics and Business, Universitas Wahid Hasyim, Semarang – Indonesia
Social Sciences

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Political Memory, Economic Sovereignty, and New Dependencies: Indonesia's Downstreaming and Energy Transition in the Midst of Foreign Investment Sugiarto Pramono; Fuat Albayumi; Muhamad Takhim; Muhammad Dhani
Nation State: Journal of International Studies Vol. 9 No. 1 (2026): Political Memory, Emotions, and the Politics of Exclusion in IR
Publisher : Faculty of Economics and Social Science, Department of International Relations, Universitas Amikom Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24076/nsjis.v9i1.2734

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.
Co-Authors Fuat Albayumi Muhammad Dhani Sugiarto Pramono