THE IMPACT OF DOWNSTREAM MINING-BASED INDUSTRIES ON THE ECONOMY OF SOUTHEAST SULAWESI PROVINCE

Industrial downstreaming through the development of industrial estates and smelters is a National Strategic Project (PSN), some of which are located in Southeast Sulawesi Province. The investment plan for the development of industrial estates and smelters is estimated to reach Rp 67.7 trillion.  Therefore, it is necessary to conduct a study to analyze the role of industrial estate and smelter development on the economic performance of Southeast Sulawesi Province. The method used is the Final Demand Impact analysis of the Input Output (I-O) Table. The results of this study showed that the downstream industry contributed to an increase in output and value added to the economy of Southeast Sulawesi Province by 3 times as much as before and an increase in employment to around 4.5 million people. Based on the results of this study, a real justification is obtained that the downstreaming of industrial estate and smelter development plays an important role in encouraging the achievement of several national industrial development goals, namely increasing output, added value and employment through sustainable mining downstreaming.