Indonesia Requires US$618 Billion in Investment to Drive National Downstreaming Programme Until 2040
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed that Indonesia requires massive investment to drive the national cross-sector downstreaming programme through to 2040.
According to Bahlil, the investment needed to build a complete upstream-to-downstream downstreaming ecosystem is estimated at US$618 billion, equivalent to Rp10,045 trillion based on an exchange rate of Rp16,250 per US dollar.
"In the downstreaming sector, we have scheduled through to 2040, and we need approximately US$618 billion. This data comes from Pak Nurul, a Deputy at the Ministry of Investment, when I was still serving there as Head of BKPM," Bahlil said in Jakarta on Tuesday (3 June).
Bahlil explained that the investment requirements cover a very broad range of sectors, not limited to oil and gas or minerals and coal. The government is also promoting downstreaming in the agriculture, plantation and fisheries sectors.
"This US$618 billion is for building downstreaming across all aspects. Not only in oil and gas, not only in mineral and coal, but also encompassing agriculture, fisheries and plantations," Bahlil emphasised.
In the first phase, the government will commence 21 projects with a total investment of approximately US$45 billion. Although Bahlil did not detail the list of projects, they will focus on strengthening industrial downstreaming and national energy sovereignty.
According to Bahlil, the investment needed to build a complete upstream-to-downstream downstreaming ecosystem is estimated at US$618 billion, equivalent to Rp10,045 trillion based on an exchange rate of Rp16,250 per US dollar.
"In the downstreaming sector, we have scheduled through to 2040, and we need approximately US$618 billion. This data comes from Pak Nurul, a Deputy at the Ministry of Investment, when I was still serving there as Head of BKPM," Bahlil said in Jakarta on Tuesday (3 June).
Bahlil explained that the investment requirements cover a very broad range of sectors, not limited to oil and gas or minerals and coal. The government is also promoting downstreaming in the agriculture, plantation and fisheries sectors.
"This US$618 billion is for building downstreaming across all aspects. Not only in oil and gas, not only in mineral and coal, but also encompassing agriculture, fisheries and plantations," Bahlil emphasised.
In the first phase, the government will commence 21 projects with a total investment of approximately US$45 billion. Although Bahlil did not detail the list of projects, they will focus on strengthening industrial downstreaming and national energy sovereignty.