Inaugurated by Prabowo, Here is the List of 13 New Downstreaming Projects and Their Owners
President of the Republic of Indonesia Prabowo Subianto inaugurated the construction or groundbreaking of 13 downstreaming projects at various locations across Indonesia. Most of these 13 projects are being built by state-owned enterprises (BUMNs) and their partners.
President Prabowo Subianto explained that this groundbreaking represents the second phase of downstreaming projects, encompassing 13 initiatives worth Rp116 trillion. These include 5 projects in the energy sector, 5 in minerals, and 3 in agriculture.
“The first phase of downstreaming already featured 13 projects at 13 locations, and shortly, this year we will add another 6 downstreaming projects, and we will continue to add more. There might be phases 4, 5, 6, God willing, this year as well,” Prabowo clarified during the inauguration in Cilacap, Central Java, quoted on Thursday (30/4/2026).
Prabowo emphasised that downstreaming of natural resources in Indonesia is the only way for the country to achieve greater prosperity. Therefore, the government will continue to advance downstreaming development in the nation.
“Downstreaming is the only way for us to become more prosperous,” Prabowo stated.
One of the second-phase downstreaming projects drawing attention is the groundbreaking for developing coal into Dimethyl Ether (DME) in Tanjung Enim, South Sumatra. This project is initiated by BPI Danantara and executed by MIND ID along with PT Bukit Asam Tbk, Pertamina, and other strategic partners.
The DME project is expected to serve as a substitute for imported LPG. Given Indonesia’s high dependency on imported energy to date.
Here is the list of the 13 second-phase downstreaming projects along with their owners:
Projects 1-2:
Construction of Gasoline Refinery Facilities
BUMN Holding: PT Pertamina (Persero)
Location: Dumai (Riau), Cilacap (Central Java)
• Expansion of gasoline refinery capacity at the existing RU II Dumai and RU IV Cilacap facilities with a total capacity of 62 MBSD, targeted to come online in Q4 2030.
• This project will substitute gasoline imports by up to 2 million KL per year or 9.47% of the national supply-demand gap, supporting the fulfilment of Pertamax Series from domestic production, and reducing imports of by-products including propylene and LPG.
• The project contributes to strengthening national energy resilience while maintaining energy price stability, ultimately supporting consumer purchasing power and community economic activities.
Projects 3-4-5:
Construction of Fuel Oil Operational Tanks
BUMN Holding: PT Pertamina (Persero)
Location: Palaran (East Kalimantan), Biak (Papua), Maumere (East Nusa Tenggara)
• Development of three BBM terminals in Palaran (37,000 KL), Biak (46,000 KL), and Maumere (70,000 KL) with a total additional capacity of 153,000 KL, increasing national storage capacity by 3.1%.
• Executed by Pertamina Patra Niaga and targeted to come online in stages in 2027 (Maumere) and 2028 (Palaran, Biak).
• This project strengthens energy distribution reliability, particularly in eastern Indonesia, thereby promoting equitable development and reducing inter-regional price disparities.
Project 6:
Coal Processing Facility into DME
BUMN Holding: PT Pertamina (Persero), PT Mineral Industri Indonesia (Persero)
Location: Tanjung Enim (South Sumatra)
• Development of a DME production facility with a capacity of 1.4 million tonnes per year in Tanjung Enim, with PTBA as the operator and Pertamina Patra Niaga as the offtaker.
• This project substitutes LPG imports, which currently meet 80% of national needs.
• In addition to providing foreign exchange efficiency, the project strengthens domestic energy resilience and creates new job opportunities in downstream energy-based industries.
Project 7:
Development of Stainless Steel Manufacturing Facility from Nickel
BUMN Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Tsingshan Group
Location: Indonesia Morowali Industrial Park (Central Sulawesi)
• Development of a stainless steel slab production facility with a capacity of 1.2 million tonnes per year based on local nickel through modern smelting and refining processes.
• This initiative increases the added value of domestic minerals while promoting job creation in industry and sustainable economic growth in industrial areas.
Project 8:
Development of Carbon Steel Slab Production Facility from Local Iron Ore
BUMN Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Xin Hai Group
Location: Cilegon (Banten)
• Development of a steel slab production facility with a capacity of 1.5 million tonnes per year through production process improvements and modernisation of existing facilities to achieve operational efficiency.
• As part of the basic industry, this project strengthens the foundation of national industrialisation while supporting infrastructure development efficiency and enhancing domestic industry competitiveness.
Project 9:
Ecosystem and Buton Asphalt Production Facility
BUMN Holding: PT Wijaya Karya (Persero) Tbk., PT Jasa Marga (Persero) Tbk.
Location: Karawang (West Java)
• Development of Buton Asphalt aimed at increasing utilisation from 5,000 tonnes in 2025 to 300,000 tonnes in 2030.
• This project encourages the optimisation of local resources while boosting economic activities in producing regions and opening job opportunities in construction and materials sectors.
Project 10:
Copper and Gold Downstreaming
BUMN Holding: PT Mineral Industri Indonesia (Persero), PT Len Industri (Persero)
Location: Gresik (East Java)
• Development of Brass Mill, Brass Cup, and precious metal manufacturing facilities based on anode slime.
• This project strengthens the national strategic industry and opens high-value-added job opportunities in the metal manufacturing sector.
Project 11:
Palm Oil Processing into Oleofood and Biodiesel
BUMN Holding: PT Perkebunan Nusantara III (Persero)
Location: Sei Mangkei (North Sumatra)
• Development of a palm oil downstreaming cluster through oleofood and biodiesel facilities.
• This project increases the added value of palm oil commodities while supporting improved welfare for farmers and strengthening national energy resilience.
Project 12:
Facility P