President Prabowo: SOE Profits to Fund Downstreaming and Global Supply Chain Integration

President Prabowo Subianto has affirmed that the increased profits of state-owned enterprises (SOEs) now carry a new strategic orientation. These profits are not only allocated to boost state revenue but are focused as a driving force for accelerating the national downstreaming programme and strengthening Indonesia’s position in the global supply chain.

The President delivered this statement at the 2026 Annual Session of the MPR RI and the Joint Session of the DPR-DPD RI at the MPR/DPR RI Building in Jakarta on Friday (14/8). Prabowo emphasised that SOEs must become the primary source of financing for the various downstreaming projects currently underway.

“SOE profits are now being used to accelerate our downstreaming efforts,” said President Prabowo.

In his report, the President revealed that the government, together with Danantara, has begun concrete steps through two major waves of downstreaming project groundbreakings in the first half of 2026. These projects span the mining sector to waste management.

Several strategic projects in the spotlight include the processing of coal into dimethyl ether (DME), downstreaming of copper and gold, industrial salt processing, and the construction of an alumina smelter into aluminium. In addition, the government is beginning to develop waste-to-energy projects as part of downstreaming diversification.

The President is optimistic that these projects will have a significant impact on the people’s economy. “These projects will generate tens of thousands of new jobs for our people,” he explained.

Beyond domestic downstreaming, President Prabowo outlined an upstreaming strategy through Danantara Indonesia. The government plans to use SOE profits to acquire the best companies at the global level.

This acquisition strategy aims to achieve three main objectives. According to the President, this strategy is crucial so that Indonesia does not merely stop at the stage of processing natural resources domestically, but also gains control over technology and global market networks. “We are buying the world’s best companies to help make Indonesia part of the global supply chain,” Prabowo concluded.