Government Accelerates Downstreaming and Domestic Energy Programme

The government is accelerating the downstreaming programme and strengthening national energy resilience to promote economic independence. Energy and Mineral Resources Minister Bahlil Lahadalia reported these developments to President Prabowo Subianto during a meeting in Jakarta on Wednesday (25/3/2026). Bahlil explained that the government is optimising the use of natural resources through increased value addition domestically and reducing reliance on energy imports. This strategy forms part of the broader agenda to strengthen the national economy’s foundation based on domestic energy. Bahlil stated that out of 20 first-phase downstreaming projects, several have entered the groundbreaking stage, while the rest are scheduled to begin next month. The government is also preparing additional downstreaming projects with significant investment value. “Then we will add 13 downstreaming items with a total investment of approximately Rp239 trillion, which we will finalise for discussion,” Bahlil said in a written statement in Jakarta on Thursday (26/3/2026). Besides downstreaming, Bahlil conveyed the President’s directive to optimise all domestic energy potentials to strengthen national energy self-sufficiency. Policy focus is directed towards developing ethanol and biodiesel based on Crude Palm Oil (CPO). “The President has instructed to optimise all existing energy potentials, whether ethanol or biodiesel from CPO,” Bahlil said. On the same occasion, Bahlil reported developments in energy and mineral commodity prices, particularly coal and nickel. To date, the government has not changed policies on managing these two commodities while continuing to monitor global market dynamics. Bahlil added that the government is opening limited and measured room for relaxing coal and nickel production. This policy aims to maintain a balance between supply and demand to keep national commodity prices stable. “What is meant by measured relaxation is limited and still maintains supply and demand as well as prices,” Bahlil said. The government is also signalling adjustments to the Mineral Benchmark Price (HPM) for nickel to increase benefits for the state. This policy is deemed important so that the management of strategic minerals provides fairer revenues. “Most likely the HPM for nickel, I will increase,” Bahlil said. Bahlil conveyed that the President has given special directives for natural resource management to prioritise state interests and optimise mineral sector revenues. The government positions natural resources as strategic national assets that must be managed sustainably.