13 Downstream Projects Worth Rp116 Trillion Begin Construction, Here Are the Owners

President Prabowo Subianto inaugurated the construction or groundbreaking of 13 downstream projects at various locations across Indonesia. Most of these 13 projects are being developed by state-owned enterprises (BUMNs) and their partners.

President Prabowo Subianto explained that this groundbreaking represents the second phase of downstreaming projects, encompassing 13 initiatives worth Rp116 trillion. This includes five projects in the energy sector, five in minerals, and three in agriculture.

“The first phase of downstreaming already had 13 projects in 13 locations, and shortly, this year, we will add six more downstreaming projects, and we will continue to add them. There might be phases 4, 5, 6, God willing, this year as well,” Prabowo clarified during the inauguration in Cilacap, Central Java, on Wednesday (29/4/2026).

Prabowo emphasised that downstreaming of natural resources in Indonesia is the only way to make the country more prosperous. Therefore, the government will continue to advance downstreaming development in the nation.

“Downstreaming is the only way for us to become more prosperous,” Prabowo stated.

One of the second-phase downstream projects drawing attention is the groundbreaking for developing coal into Dimethyl Ether (DME) in Tanjung Enim, South Sumatra. This project is initiated by BPI Danantara and executed by MIND ID together with PT Bukit Asam Tbk, Pertamina, and other strategic partners.

The DME project is expected to substitute imported LPG. Given Indonesia’s high dependency on imported energy to date.

Here is the List of 13 Second-Phase Downstream Projects Along with Their Owners:

Projects 1-2:

Construction of Gasoline Refinery Facilities

BUMN Holding: PT Pertamina (Persero)

Location: Dumai (Riau), Cilacap (Central Java)

• Expansion of gasoline refinery capacity at the existing RU II Dumai and RU IV Cilacap facilities with a total capacity of 62 MBSD, targeted to come online in Q4 2030.

• This project substitutes gasoline imports by up to 2 million KL per year or 9.47% of the national supply-demand gap, supports the fulfilment of Pertamax Series from domestic production, and reduces imports of by-products including propylene and LPG.

• This project contributes to strengthening national energy resilience while maintaining energy price stability, ultimately supporting purchasing power and community economic activities.

Projects 3-4-5:

Construction of Fuel Oil Operational Tanks

BUMN Holding: PT Pertamina (Persero)

Location: Palaran (East Kalimantan), Biak (Papua), Maumere (East Nusa Tenggara)

• Development of three BBM terminals in Palaran (37 thousand KL), Biak (46 thousand KL), and Maumere (70 thousand KL) with a total additional capacity of 153 thousand KL, increasing national storage capacity by 3.1%.

• Executed by Pertamina Patra Niaga and targeted to come online in stages in 2027 (Maumere) and 2028 (Palaran, Biak).

• This project strengthens energy distribution reliability, particularly in eastern Indonesia, thereby promoting equitable development and reducing inter-regional price disparities.

Project 6:

Coal Processing Facility into DME

BUMN Holding: PT Pertamina (Persero), PT Mineral Industri Indonesia (Persero)

Location: Tanjung Enim (South Sumatra)

• Development of a DME production facility with a capacity of 1.4 million tonnes per year in Tanjung Enim, with PTBA as the operator and Pertamina Patra Niaga as the offtaker.

• This project substitutes LPG imports, which currently meet 80% of national needs.

• In addition to providing foreign exchange efficiency, this project strengthens domestic energy resilience and creates new job opportunities in the development of downstream energy-based industries.

Project 7:

Development of Stainless Steel Manufacturing Facility from Nickel

BUMN Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Tsingshan Group

Location: Indonesia Morowali Industrial Park (Central Sulawesi)

• Development of a stainless steel slab production facility with a capacity of 1.2 million tonnes per year based on local nickel through modern smelting and refining processes.

• This initiative increases the added value of domestic minerals while promoting job creation in the industry and sustainable economic growth in industrial areas.

Project 8:

Development of Carbon Steel Slab Production Facility from Local Iron Ore

BUMN Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Xin Hai Group

Location: Cilegon (Banten)

• Development of a steel slab production facility with a capacity of 1.5 million tonnes per year through production process improvements and modernisation of existing facilities to achieve operational efficiency.

• As part of the basic industry, this project strengthens the foundation of national industrialisation and supports infrastructure development efficiency and increased competitiveness of the domestic industry.

Project 9:

Buton Asphalt Ecosystem and Production Facility

BUMN Holding: PT Wijaya Karya (Persero) Tbk., PT Jasa Marga (Persero) Tbk.

Location: Karawang (West Java)

• Development of Buton Asphalt is directed to increase utilisation from 5 thousand tonnes in 2025 to 300 thousand tonnes in 2030.

• This project encourages the optimisation of local resources while increasing economic activities in producing regions and opening job opportunities in the construction and materials sector.

Project 10:

Copper and Gold Downstreaming

BUMN Holding: PT Mineral Industri Indonesia (Persero), PT Len Industri (Persero)

Location: Gresik (East Java)

• Development of Brass Mill, Brass Cup, and precious metal manufacturing facilities based on anode slime.

• This project strengthens the national strategic industry and opens high value-added job opportunities in the metal manufacturing sector.

Project 11:

Palm Oil Processing into Oleofood and Biodiesel

BUMN Holding: PT Perkebunan Nusantara III (Persero)

Location: Sei Mangkei (North Sumatra)

• Development of a palm oil downstreaming cluster through oleofood and biodiesel facilities.

• This project increases the added value of palm oil commodities while supporting improved welfare for farmers and strengthening national energy resilience.

Project 12:

Nutmeg Processing Facility