President of Indonesia Prabowo Subianto stated that downstream\nprocessing of natural resources in Indonesia is the only way for the\ncountry to become more prosperous. Therefore, the government will\ncontinue to develop downstream processing in the nation.<\/p>\n
\u201cDownstream processing is the only way for us to become more\nprosperous,\u201d explained Prabowo during the groundbreaking ceremony for 13\nDownstream Processing Projects in Cilacap, Central Java, on Wednesday\n(29\/4\/2026).<\/p>\n
As is known, today President Prabowo officiated the groundbreaking\nfor 13 Phase 2 downstream processing projects. In response, President\nPrabowo expressed his happiness over the continuity of these downstream\nprocessing projects.<\/p>\n
\u201cToday I am happy and proud. I was frank at the beginning of my\nadministration when I told the ministers, please don\u2019t invite me to\ngroundbreakings; I want to come for inaugurations when things are\nalready built. But because there are so many and they are so important,\nI feel I must be present. I am here to give encouragement and respect to\nthose who have prepared these projects,\u201d Prabowo emphasised.<\/p>\n
The following is the list of 13 Phase 2 Downstream Processing\nProjects:<\/p>\n
Projects 1-2:<\/p>\n
Construction of Gasoline Refinery Facilities<\/p>\n
State-Owned Enterprise Holding: PT Pertamina (Persero)<\/p>\n
Location: Dumai (Riau), Cilacap (Central Java)<\/p>\n
\u2022 Expansion of gasoline refinery capacity at the existing RU II Dumai\nand RU IV Cilacap facilities with a total capacity of 62 MBSD, targeted\nto come online in Q4 2030.<\/p>\n
\u2022 This project will substitute gasoline imports by up to 2 million KL\nper year, or 9.47% of the national supply-demand gap, supporting the\nfulfilment of Pertamax Series from domestic production, and reducing\nimports of by-products including propylene and LPG.<\/p>\n
\u2022 This project contributes to strengthening national energy\nresilience while maintaining energy price stability, ultimately\nsupporting purchasing power and community economic activities.<\/p>\n
Projects 3-4-5:<\/p>\n
Construction of Operational Fuel Oil Tanks<\/p>\n
State-Owned Enterprise Holding: PT Pertamina (Persero)<\/p>\n
Location: Palaran (East Kalimantan), Biak (Papua), Maumere (East Nusa\nTenggara)<\/p>\n
\u2022 Development of three fuel oil terminals in Palaran (37,000 KL),\nBiak (46,000 KL), and Maumere (70,000 KL) with a total additional\ncapacity of 153,000 KL, increasing national storage capacity by\n3.1%.<\/p>\n
\u2022 Implemented by Pertamina Patra Niaga and targeted to come online in\nstages in 2027 (Maumere) and 2028 (Palaran, Biak).<\/p>\n
\u2022 This project strengthens energy distribution reliability,\nparticularly in eastern Indonesia, thereby promoting equitable\ndevelopment and reducing inter-regional price disparities.<\/p>\n
Project 6:<\/p>\n
Coal Processing Facility into DME<\/p>\n
State-Owned Enterprise Holding: PT Pertamina (Persero), PT Mineral\nIndustri Indonesia (Persero)<\/p>\n
Location: Tanjung Enim (South Sumatra)<\/p>\n
\u2022 Development of a DME production facility with a capacity of 1.4\nmillion tonnes per year in Tanjung Enim, with PTBA as the operator and\nPertamina Patra Niaga as the offtaker.<\/p>\n
\u2022 This project substitutes LPG imports, which currently meet 80% of\nnational needs.<\/p>\n
\u2022 In addition to providing foreign exchange efficiency, this project\nstrengthens domestic energy resilience and creates new job opportunities\nin the development of downstream energy-based industries.<\/p>\n
Project 7:<\/p>\n
Development of Stainless Steel Manufacturing Facility from Nickel<\/p>\n
State-Owned Enterprise Holding\/Partner: PT Krakatau Steel (Persero)\nTbk. \/ Tsingshan Group<\/p>\n
Location: Indonesia Morowali Industrial Park (Central Sulawesi)<\/p>\n
\u2022 Development of a stainless steel slab production facility with a\ncapacity of 1.2 million tonnes per year based on local nickel through\nmodern smelting and refining processes.<\/p>\n
\u2022 This initiative increases the added value of domestic minerals\nwhile promoting job creation in industry and sustainable economic growth\nin industrial areas.<\/p>\n
Project 8:<\/p>\n
Development of Carbon Steel Slab Production Facility from Local Iron\nOre<\/p>\n
State-Owned Enterprise Holding\/Partner: PT Krakatau Steel (Persero)\nTbk. \/ Xin Hai Group<\/p>\n
Location: Cilegon (Banten)<\/p>\n
\u2022 Development of a steel slab production facility with a capacity of\n1.5 million tonnes per year through production process improvements and\nmodernisation of existing facilities to achieve operational\nefficiency.<\/p>\n
\u2022 As part of the basic industry, this project strengthens the\nfoundation of national industrialisation while supporting infrastructure\ndevelopment efficiency and enhancing domestic industrial\ncompetitiveness.<\/p>\n
Project 9:<\/p>\n
Ecosystem and Buton Asphalt Production Facility<\/p>\n
State-Owned Enterprise Holding: PT Wijaya Karya (Persero) Tbk., PT\nJasa Marga (Persero) Tbk.<\/p>\n
Location: Karawang (West Java)<\/p>\n
\u2022 Development of Buton Asphalt is directed to increase utilisation\nfrom 5,000 tonnes in 2025 to 300,000 tonnes in 2030.<\/p>\n
\u2022 This project promotes the optimisation of local resources while\nincreasing economic activities in producing regions and opening job\nopportunities in the construction and materials sector.<\/p>\n
Project 10:<\/p>\n
Copper and Gold Downstream Processing<\/p>\n
State-Owned Enterprise Holding: PT Mineral Industri Indonesia\n(Persero), PT Len Industri (Persero)<\/p>\n
Location: Gresik (East Java)<\/p>\n
\u2022 Development of Brass Mill, Brass Cup, and precious metal\nmanufacturing facilities based on anode slime.<\/p>\n
\u2022 This project strengthens national strategic industries and opens\nhigh value-added job opportunities in the metal manufacturing\nsector.<\/p>\n
Project 11:<\/p>\n
Palm Oil Processing into Oleofood and Biodiesel<\/p>\n
State-Owned Enterprise Holding: PT Perkebunan Nusantara III\n(Persero)<\/p>\n
Location: Sei Mangkei (North Sumatra)<\/p>\n
\u2022 Development of a palm oil downstream cluster through oleofood and\nbiodiesel facilities.<\/p>\n
\u2022 This project increases the added value of palm oil commodities\nwhile supporting improved welfare for farmers and strengthening national\nenergy resilience.<\/p>\n
Project 12:<\/p>\n
Nutmeg Processing Facility into Oleoresin<\/p>\n
State-Owned Enterprise Holding: PT Perkebunan Nusantara III\n(Persero)<\/p>\n
Location: Central Maluku (Maluku)<\/p>\n
\u2022 Development of a nutmeg processing facility into oleoresin.<\/p>\n
\u2022 This project strengthens the regional economy based on flagship\ncommodities and increases farmer incomes through higher value-added\nproducts.<\/p>\n
Project 13:<\/p>\n
Integrated Coconut Facility<\/p>\n
State-Owned Enterprise Holding: PT Perkebunan Nusantara III\n(Persero)<\/p>\n
Location: Central Maluku (Maluku)<\/p>\n
\u2022 Development of an integrated coconut processing facility producing\nMCT, coconut flour<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-states-downstream-processing-is-indonesias-only-path-to-prosperity-1777445557", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }