Indonesian Political, Business & Finance News

Groundbreaking of 13 National Downstreaming Projects Phase II Strengthens National Economic Foundation

| | Source: REPUBLIKA Translated from Indonesian | Economy
Groundbreaking of 13 National Downstreaming Projects Phase II Strengthens National Economic Foundation
Image: REPUBLIKA

President Prabowo Subianto conducted the groundbreaking for the national downstreaming projects Phase II at Refinery Unit IV Cilacap, Central Java, on Wednesday (29/4/2026). This event forms part of the government’s commitment to accelerating the national industrial transformation through strengthening downstreaming in strategic sectors.

President Prabowo emphasised that downstreaming is key to increasing the added value of Indonesia’s natural resources while strengthening national economic independence. The Head of State stressed that downstreaming is the path to the resurgence of the Indonesian nation.

“The groundbreaking for the second phase of downstreaming, encompassing 13 strategic downstreaming projects valued at approximately IDR 116 trillion, includes 5 projects in the energy sector, 5 projects in the minerals sector, and 3 projects in the agriculture sector,” stated Prabowo.

Previously, Minister of Investment and Downstreaming, who is also the Head of the Nusantara Future Investment Management Agency (BPI Danantara), Rosan Roeslani, in his report, conveyed that the Phase II downstreaming projects represent a continuation of the government’s strategic efforts to strengthen the national industrial ecosystem. Rosan explained that processing state assets serves as a catalyst for national economic transformation as state investments to provide the greatest possible benefits for the Indonesian people.

“We will undertake this as the beginning of a great leap for Indonesia as a nation that is not only rich in natural resources but also sovereign in its processing, superior in its production, and prosperous in its outcomes,” said Rosan.

The 13 Phase II downstreaming projects consist of various developments in integrated processing and refining, encompassing refinery capacity enhancements, development of high-value derivative products, and construction of supporting facilities that strengthen the national industrial supply chain, as follows:

  1. Projects 1 and 2: Construction of Gasoline Refinery Facilities in Dumai (Riau) and Cilacap (Central Java);

  2. Projects 3, 4, 5: Construction of Operational Fuel Storage Tanks in Palaran (East Kalimantan), Biak (Papua), and Maumere (East Nusa Tenggara);

  3. Project 6: Development of DME Production Facilities with a capacity of 1.4 million tonnes per year in Tanjung Enim (South Sumatra);

  4. Project 7: Development of Stainless Steel Manufacturing Facilities from Nickel at Indonesia Morowali Industrial Park (Central Sulawesi);

  5. Project 8: Development of Carbon Steel Slab Production Facilities from Local Iron Ore in Cilegon (Banten);

  6. Project 9: Buton Asphalt Ecosystem and Production Facilities in Karawang (West Java);

  7. Project 10: Downstreaming of Copper and Gold in Gresik (East Java);

  8. Project 11: Processing of Palm Oil into Oleofood and Biodiesel in Sei Mangkei (North Sumatra);

  9. Project 12: Processing of Nutmeg into Oleoresin in Central Maluku (Maluku);

  10. Project 13: Integrated Coconut Facilities producing MCT, coconut flour, and activated carbon in Central Maluku (Maluku).

With substantial investments and cross-sectoral coverage, Phase II downstreaming serves as a strategic foundation towards a more independent, sovereign, and globally competitive Indonesia.

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