Indonesian Political, Business & Finance News

Rosan states Coordinating Ministry for Downstreaming will accelerate energy transition

| Source: ANTARA_ID Translated from Indonesian | Economy
Rosan states Coordinating Ministry for Downstreaming will accelerate energy transition
Image: ANTARA_ID

The Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, stated that the formation of the Coordinating Ministry for Downstreaming and Energy Transition will accelerate the implementation of the government’s downstreaming and energy transition programmes.

“With the existence of a coordinating ministry for both downstreaming and energy transition, I am confident it will make the work more comprehensive and faster,” said Rosan following the opening of the Indonesia International Sustainability Forum (ISF) 2026 in Jakarta on Tuesday.

Rosan made these remarks while explaining the direction of the government’s downstreaming and energy transition programmes following the establishment of the coordinating ministry overseeing both sectors.

He cited the government’s programme to develop 100 gigawatt (GW) of solar power capacity as one of the priority programmes within the energy transition agenda. According to Rosan, approximately 13 GW of diesel-based electricity capacity will be gradually replaced with solar energy as part of this programme.

“Roughly 13 gigawatts will be replaced gradually and quickly with solar panels,” he said.

On the other hand, he noted that downstreaming remains a primary pillar in attracting investment, as it enables Indonesia to capture added value from its resources while strengthening domestic industrialisation.

He mentioned that downstreaming investment currently contributes about 30 per cent to Indonesia’s total realised investment and expects this trend to continue increasing.

However, regarding the position of the Ministry of Investment and Downstreaming/BKPM within the coordination of the Coordinating Ministry for Downstreaming and Energy Transition, Rosan stated that his office is still awaiting government directives.

“We are just waiting for direction. We are waiting for direction,” Rosan said.

Regarding the possibility of these arrangements being formalised through a presidential regulation, Rosan said his department would follow the government’s decision.

“Yes, we will just follow. The important thing is that our coordination remains good,” he added.

President Prabowo Subianto inaugurated Bahlil Lahadalia as the Coordinating Minister for Downstreaming and Energy Transition on 1 October 2026, based on Presidential Decree Number 104/P of 2026. Bahlil also continues to serve as the Minister of Energy and Mineral Resources (ESDM).

Following his inauguration, Bahlil stated that the Coordinating Ministry for Downstreaming and Energy Transition is directed to consolidate and accelerate the implementation of the downstreaming and energy transition agendas, which are part of President Prabowo’s ‘Asta Cita’ vision. He noted that approximately 90 per cent of downstreaming investment is located within the energy and mineral resources sector.

Meanwhile, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated on 2 October 2026 that the division of technical ministries under the coordination of the new ministry is still being discussed by the government.

Airlangga said that this division will be formalised within the organisational structure and working procedures of the ministry, with discussions being conducted by the Ministry of Administrative Reform and Bureaucratic Reform.

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