Danantara targets downstreaming to save $1.25 billion in foreign exchange
Jakarta (ANTARA) - The Minister of Investment and Downstreaming, who also serves as CEO of Danantara, Rosan Perkasa Roeslani, targets the second phase of strategic downstreaming projects, one of which is the construction of gasoline refinery facilities in Cilacap and Dumai, to save $1.25 billion in foreign exchange.
“From the construction in Cilacap and Dumai, this will reduce imports by approximately $1.25 billion per year,” said Rosan while reporting on the 13 second-phase downstreaming projects that were symbolically started by President Prabowo Subianto in Cilacap, quoted from a video by the Presidential Secretariat in Jakarta on Wednesday.
Rosan explained that strengthening energy resilience is a priority in five energy sector projects to reduce dependence on imported fuel oil (BBM).
The government is also working to address the LPG import burden, which currently accounts for 80 percent of national needs, through energy substitution measures.
Other downstreaming projects include the construction of stainless steel manufacturing, nickel manufacturing, carbon steel slab, copper and gold downstreaming in Gresik, as well as iron ore in Cilegon.
Additionally, there is the production of Buton asphalt in Southeast Sulawesi to reduce dependence on asphalt imports.
Besides the energy sector, the government is also carrying out downstreaming in the agricultural sector, namely the construction of palm oil processing into oleofood products and biodiesel in Sei Mangkei, North Sumatra, as well as the construction of a downstreaming factory for coconut and nutmeg products in Central Maluku to sustainably increase the added value of local commodities.
The construction of these 13 downstreaming projects is a continuation of the first-phase development carried out in February at 11 different locations.
In the future, Rosan said there will still be the construction of the third-phase downstreaming projects, which will bring the total to 30 projects.