Indonesia Plans $14 Billion in New Downstream Industrial Projects

Indonesia Plans $14 Billion in New Downstream Industrial Projects

Bogor. The Indonesian government is preparing to launch additional downstream industrial projects worth Rp 239 trillion ($14 billion) in the near term, Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday evening.

The announcement followed a meeting with President Prabowo Subianto and several cabinet ministers at the president’s private residence in Bogor, West Java.

“We are adding 13 downstream projects with a total investment of around Rp 239 trillion,” Bahlil told reporters, declining to provide further details pending final government approval.

The new pipeline builds on an earlier batch of 20 downstream industrialization projects, primarily in energy, mining, and agriculture, overseen by sovereign wealth fund Danantara. Some of those projects have already broken ground, while others are scheduled to begin next month, Bahlil said. Total investment for the initial batch is estimated at $26 billion.

Projects that have entered the construction phase include an aluminum smelter in Mempawah, an aviation biofuel facility in Cilacap, and a bioethanol plant in Banyuwangi.

Through these initiatives, President Prabowo aims to strengthen Indonesia’s energy and food self-sufficiency while boosting export value by adding downstream processing to the country’s natural resource commodities.

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