Indonesia Launches Rp116 Trillion Downstreaming Projects: Where's the Funding Coming From? Rosan Explains
President Prabowo Subianto has just inaugurated the start of construction for 13 phase-two downstreaming projects with a total estimated investment value of Rp116 trillion.
The groundbreaking ceremony for these 13 downstreaming projects took place in Cilacap, Central Java, on Wednesday (29/4/2026). In addition to Cilacap, the inaugurations were held simultaneously in several locations, including Tanjung Enim, South Sumatra.
The inauguration event was also attended by several state officials, including Coordinating Minister for the Economy Airlangga Hartarto, Coordinating Minister for Food Zulkifli Hasan, Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of Agriculture Amran Sulaiman, Minister of Marine Affairs and Fisheries Sakti Wahyu Trenggono, Minister of Industry Agus Gumiwang Kartasasmita, and National Police Chief Listyo Sigit Prabowo.
Minister of Investment and Downstreaming as well as CEO of Danantara Rosan Roeslani, along with other Danantara officials, also attended the inauguration, including Head of SOE Holding and COO of Danantara Dony Oskaria and CIO of Danantara Pandu Sjahrir.
CEO of Danantara Rosan Roeslani stated that they are pushing for the swift execution of these downstreaming projects to create added value, foster industry, and undoubtedly generate employment opportunities.
“So if we look at the projects we are running, it will create jobs for approximately 600,000 people, Mr President,” Rosan said when delivering a report on the downstreaming projects being undertaken by Danantara to President Prabowo Subianto during the groundbreaking of the 13 phase-two downstreaming projects in Cilacap, Central Java, on Wednesday (29/4/2026).
For these 13 phase-two downstreaming projects, he mentioned that the investment value to be disbursed amounts to Rp116 trillion.
So, where will the money for the downstreaming investment needs come from? Will it all come from Danantara?
Rosan answered that the investment will be disbursed by each respective state-owned enterprise (BUMN) undertaking the downstreaming projects.
“No, it’s all from state-owned enterprises or BUMNs. Where we are encouraging them to accelerate or speed up these downstreaming projects that were already in their plans but not implemented until then, and now we see, we accelerate, and we also strengthen their capital sector to carry them out,” Rosan explained when met by the media after the inauguration event.
“So Danantara is also helping the capital sector for some of these BUMNs. For example, at Krakatau Steel, we have already entered the funding. So we help through the funding aspect. Because in terms of know-how, the technology, these BUMNs are already more knowledgeable and more expert in their industry and field,” he added.
List of 13 Downstreaming Projects
Here is the complete list of the 13 phase-two downstreaming projects:
Projects 1-2:
Construction of Gasoline Refinery Facilities
BUMN Holding: PT Pertamina (Persero)
Location: Dumai (Riau), Cilacap (Central Java)
• Development 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.
• This project contributes to strengthening national energy resilience while maintaining energy price stability, ultimately supporting people’s purchasing power and economic activities.
Projects 3-4-5:
Construction of Operational Fuel Oil Tanks
BUMN Holding: PT Pertamina (Persero)
Location: Palaran (East Kalimantan), Biak (Papua), Maumere (East Nusa Tenggara)
• Development of three fuel oil 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%.
• To be implemented by Pertamina Patra Niaga and targeted to come online in stages in 2027 (Maumere) and 2028 (Palaran, Biak).
• This project strengthens energy distribution reliability, especially 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, this project strengthens domestic energy resilience and creates new job opportunities in the development of 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 encouraging industrial job creation 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 steel industry