Hendrik Yaputra, Jakarta – Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia stated that 21 downstreaming projects will be accelerated. Daya Anagata Nusantara Investment Management Agency (BPI Danantara) will fund the downstreaming projects.
This agreement was made in a meeting led by President Prabowo Subianto at Merdeka Palace, Jakarta, on Monday evening, March 3, 2025.
"We have decided the first stage of downstreaming, which is targeted at approximately US$618 billion, for the year 2025, in which we have presented approximately 21 projects in the first stage with a total investment of approximately US$40 billion," said Bahlil in a press release after the meeting.
The Chairperson of the Golkar Party said that one of the main projects is the construction of an oil project storage in Nipah Island. The oil storage is targeted to meet the national needs for 30 days following the Presidential Regulation.
In addition, the government will also build a refinery with a capacity of 500 thousand barrels per day, which will be one of the largest Indonesia oil processing facilities. This project aims to ensure more stable domestic energy supply and reduce imported dependence.
In the coal gasification sector, the government targets the development of Dimethyl Ether (DME) production as a substitute for LPG (liquefied petroleum gas). According to Bahlil, this DME project will be carried out differently, relying on domestic resources without dependence on foreign investors.
"Now we do not need foreign investors, all will go through the President's policy by utilizing domestic resources. What we need from them is their technology, we need their capital expenditure from the government and national private sectors, then the raw materials are from us, and the off-takers are also from us," he said.
Bahlil mentioned that the DME project will be developed simultaneously in South Sumatra, East Kalimantan, and South Kalimantan. In addition to DME, the government will increase the added value in the mining sector, such as copper, nickel, and bauxite into alumina. The fisheries, agriculture, and forestry sectors are also part of the downstreaming priorities.
President Prabowo has even identified 26 commodity sectors as national downstreaming priorities, covering minerals, oil and gas, fisheries, agriculture, plantations, and forestry. In addition to strengthening national energy and industry resilience, this downstreaming is also projected to create many job opportunities for the people of Indonesia.
Source: https://en.tempo.co/read/1982274/danantara-will-fund-21-governments-strategic-project