Groundbreaking of Downstream Phase II, Rosan: Boosting Value Addition and Absorbing 600,000 Workers
The government has begun construction on 13 national downstreaming projects in the second phase, with a total investment of around Rp116 trillion. This programme forms part of a broader strategy to bolster the industrial structure and promote value-added economic growth.
Head of Danantara Indonesia, Rosan Roeslani, stated that downstreaming is a key step in the national economic transformation, particularly to optimise the utilisation of domestic natural resources.
According to Rosan, the projects in this second phase cover the energy, minerals and metals, and agroindustry sectors, all directed towards reducing import dependency while strengthening domestic industry.
“This downstreaming programme aims to create value addition, strengthen the national industry, and, no less importantly, open up employment opportunities,” said Rosan during the national downstreaming groundbreaking in Cilacap on Wednesday (29/4/2026).
He explained that from all the downstreaming projects being implemented, the government targets absorbing up to around 600,000 workers, while also driving more inclusive economic growth.
In this second phase, there are five projects in the energy sector, including the construction of refineries and fuel storage infrastructure to strengthen national energy resilience. These projects are also targeted to reduce energy imports by around US$1.25 billion per year.
Meanwhile, in the minerals and metals sector, downstreaming is focused on processing strategic commodities such as copper, nickel, steel, and asphalt, which is expected to cut imports by up to 20 per cent and save around US$200 million in foreign exchange.
In the agroindustry sector, downstreaming is carried out through the processing of commodities such as coconut, palm oil, and spices to increase the value addition of domestic products.
Rosan added that the national downstreaming programme will continue into subsequent phases. Following the first and second phases, the government has prepared further phases to expand the impact of industrialisation.
“We will continue this into the next phases, because downstreaming is an important foundation in building a strong and sustainable economy,” he said.
He emphasised that the success of downstreaming greatly depends on synergy between the central government, regional authorities, state-owned enterprises, and all stakeholders.
With the phased and integrated development of projects, the government targets that Indonesia will no longer rely on raw material exports, but will be able to become a producer of high-value-added products that are globally competitive.