Phase 2 Downstreaming Projects Underway, Targeting Absorption of 600,000 Workers

The government has officially begun construction on 13 national downstreaming projects in the second phase, with a total investment value of Rp 116 trillion. The inauguration was marked by a centralised groundbreaking ceremony in Cilacap, Central Java, conducted by President Prabowo Subianto on Wednesday (29/4/2026). This programme forms part of the downstreaming projects targeting the strengthening of resource-based industries through domestic processing. Sectorally, the projects cover energy, minerals and metals, as well as agroindustry. “A nation that wants to be independent, a nation that wants to remain independent is a nation that is capable and brave enough to master its own resources. Downstreaming is the only way for us to become more prosperous,” stated Prabowo. In addition to increasing added value, the projects are directed towards reducing import dependency, strengthening industrial supply chains, and expanding employment opportunities. CEO of Danantara Indonesia, Rosan Roeslani, explained that these projects are a continuation of the first phase, which encompassed six projects across 11 locations in February 2026. “Continuing that momentum, Mr President, we are proceeding with the second phase involving these 13 strategic national downstreaming projects,” said Rosan. The distribution of projects from Sumatra to Papua also forms part of efforts to achieve national economic equity. The President emphasised that development must not be concentrated on Java island. Projects such as the fuel tank in Biak and nutmeg processing in Maluku were cited as concrete examples of equitable distribution of economic benefits based on local resources. On that occasion, Prabowo also reminded the importance of efficiency and integrity in project implementation. “I do not want to hear about any stalled projects again. I do not want to hear about public funds leaking midway,” he asserted firmly. The refinery is projected to substitute gasoline imports by up to 2 million kilolitres per year, or approximately 9.47 percent of national needs, while also supporting domestic fuel production. In addition, there are other strategic projects in the energy sector, including the construction of fuel tanks in Palaran, Biak, and Maumere with an additional capacity of 153,000 KL, as well as coal processing into dimethyl ether (DME) in Tanjung Enim, aimed at reducing LPG imports. Here is the detail of the phase 2 downstreaming projects inaugurated by the government, covering various strategic sectors from energy to agroindustry.