Prabowo States Downstream Processing is Indonesia's Only Path to Prosperity
President of Indonesia Prabowo Subianto stated that downstream processing of natural resources in Indonesia is the only way for the country to become more prosperous. Therefore, the government will continue to develop downstream processing in the nation.
“Downstream processing is the only way for us to become more prosperous,” explained Prabowo during the groundbreaking ceremony for 13 Downstream Processing Projects in Cilacap, Central Java, on Wednesday (29/4/2026).
As is known, today President Prabowo officiated the groundbreaking for 13 Phase 2 downstream processing projects. In response, President Prabowo expressed his happiness over the continuity of these downstream processing projects.
“Today I am happy and proud. I was frank at the beginning of my administration when I told the ministers, please don’t invite me to groundbreakings; I want to come for inaugurations when things are already built. But because there are so many and they are so important, I feel I must be present. I am here to give encouragement and respect to those who have prepared these projects,” Prabowo emphasised.
The following is the list of 13 Phase 2 Downstream Processing Projects:
Projects 1-2:
Construction of Gasoline Refinery Facilities
State-Owned Enterprise 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, 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 purchasing power and community economic activities.
Projects 3-4-5:
Construction of Operational Fuel Oil Tanks
State-Owned Enterprise 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%.
• 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, particularly in eastern Indonesia, thereby promoting equitable development and reducing inter-regional price disparities.
Project 6:
Coal Processing Facility into DME
State-Owned Enterprise 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
State-Owned Enterprise 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 promoting job creation in industry and sustainable economic growth in industrial areas.
Project 8:
Development of Carbon Steel Slab Production Facility from Local Iron Ore
State-Owned Enterprise 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 while supporting infrastructure development efficiency and enhancing domestic industrial competitiveness.
Project 9:
Ecosystem and Buton Asphalt Production Facility
State-Owned Enterprise Holding: PT Wijaya Karya (Persero) Tbk., PT Jasa Marga (Persero) Tbk.
Location: Karawang (West Java)
• Development of Buton Asphalt is directed to increase utilisation from 5,000 tonnes in 2025 to 300,000 tonnes in 2030.
• This project promotes 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 Downstream Processing
State-Owned Enterprise 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 national strategic industries and opens high value-added job opportunities in the metal manufacturing sector.
Project 11:
Palm Oil Processing into Oleofood and Biodiesel
State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero)
Location: Sei Mangkei (North Sumatra)
• Development of a palm oil downstream 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
State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero)
Location: Central Maluku (Maluku)
• Development of a nutmeg processing facility into oleoresin.
• This project strengthens the regional economy based on flagship commodities and increases farmer incomes through higher value-added products.
Project 13:
Integrated Coconut Facility
State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero)
Location: Central Maluku (Maluku)
• Development of an integrated coconut processing facility producing MCT, coconut flour