Indonesian Political, Business & Finance News

Prabowo Inaugurates Construction of 13 Downstreaming Projects, Here is the List

| Source: CNBC Translated from Indonesian | Energy
Prabowo Inaugurates Construction of 13 Downstreaming Projects, Here is the List
Image: CNBC

President of the Republic of Indonesia, Prabowo Subianto, inaugurated the construction of 13 downstreaming projects in phase two in several regions across Indonesia, with an estimated investment value of Rp116 trillion.

The construction of these 13 downstreaming projects in phase two represents the government’s step and strategy to accelerate industrialisation based on natural resources in order to increase added value and strengthen national energy resilience.

President Prabowo Subianto explained that this groundbreaking is for the second phase of downstreaming projects, encompassing 13 initiatives worth Rp116 trillion. These include five energy sector projects, five mineral projects, and three agricultural projects.

“The first phase of downstreaming mentioned earlier had 13 projects in 13 locations, and shortly, this year we will also add six more downstreaming projects, and we will continue to add them. There might be phases 4, 5, 6, God willing, this year as well,” Prabowo clarified during the inauguration in Cilacap, Central Java, on Wednesday (29/4/2026).

The Minister of Investment & Downstreaming or BKPM, concurrently CEO of Danantara, Rosan P. Roeslani, stated that this groundbreaking was held simultaneously at 13 locations across Indonesia.

“Previously, we carried out phase 1 downstreaming in February (13 projects). This (phase 2) project will be inaugurated. There is still phase 3 with six downstreaming projects; if we total them, around 30 projects. We see that these downstreaming projects in terms of added value, industry, and job creation will reach 600,000 people,” Rosan explained in Cilacap, Central Java, on Wednesday (29/4/2026).

Here is the complete list of the 13 downstreaming projects in phase two:

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, support the fulfilment of Pertamax Series from domestic production, and reduce 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%.

• Executed by Pertamina Patra Niaga and targeted to come online in stages in 2027 (Maumere) and 2028 (Palaran, Biak).

• This project strengthens the reliability of energy distribution, 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 operator and Pertamina Patra Niaga as 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 basic industry, this project strengthens the foundation of national industrialisation as well as supports infrastructure development efficiency and increased competitiveness of the domestic industry.

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 increasing economic activities in producing regions and opening job opportunities in the construction and materials sector.

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 added-value 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:

Nutmeg Processing Facility into Oleoresin

BUMN

View JSON | Print