Celios urges Danantara to be meticulous in downstream project pre-selection

Jakarta - Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira Adhinegara has stated that Danantara, as an Associate Member of the International Forum of Sovereign Wealth Funds (IFSWF), must be meticulous in the pre-selection of national downstream projects. Danantara is currently working on 26 downstream projects with a total investment value reaching Rp225 trillion, projected to absorb 37,833 workers. “Danantara has joined the global SWF coalition and adheres to the Santiago Principles, which must be applied in project pre-selection,” Bhima said when contacted in Jakarta on Friday. He noted that Danantara could pay special attention to the project selection process, risk management including fiscal risk, impact measurement, and coordination to reduce policy conflicts. “Danantara needs to position itself as a bridge between technical ministries, local governments, and investors,” he stated. Danantara previously reported that the 26 downstream projects cover various strategic commodities, ranging from the mining sector such as the construction of aluminium, stainless steel, and copper smelters, to the energy and food sectors through the development of bioavtur, bioethanol, palm oil processing, coconut industry, and integrated chicken farming facilities. The projects are being implemented in two phases, with the first phase commencing with a groundbreaking on 6 February 2026. This initial phase includes six priority projects across 13 locations with an investment value of Rp109 trillion and the potential to absorb 11,456 workers. The second phase will begin with a groundbreaking on 29 April 2026, covering 10 priority projects in 13 locations with an investment value of Rp116 trillion and an estimated absorption of 26,377 workers. Bhima said Indonesia should indeed be ambitious in developing various downstream potentials, particularly those capable of absorbing quality labour and providing added value to derivative products. “Indonesia should be ambitious. We have potential in food, fisheries, and renewable energy, so why should we proceed with business-as-usual? What needs attention is that projects must follow proper procedures, including technical, financial, social, and environmental readiness,” Bhima explained.