Abstract
Mineral downstream is a strategy to increase the added value of commodities owned by a country. With downstream, exported commodities are no longer raw materials but have become semi-finished goods. The construction of mineral processing facilities is a statutory mandate that must be obeyed and implemented. Mineral raw materials are processed domestically to provide added value and more meaningful benefits for Indonesians. The implementation of various policies recently issued by the Government of the Republic of Indonesia which aims to encourage downstream mineral processing in Indonesia requires research proposals to better back up and sustain policy making in this field. This paper highlights a broader understanding of downstream mineral processing location determination. Regarding to the relationship between trade theory and geographic economics is necessary to get a whole illustration of the elements where mineral processing in downstream industries must be optimized. So, the downstream process will become more attractive for the mining industry.