Minister of Energy and Mineral Resources Bahlil Lahadalia makes a press statement before the media crew after a meeting led by President Prabowo Subianto at the Merdeka Palace, Jakarta, Monday (03/03) (Photo by: Bureau of Press, Media, and Information (BPMI) of the Presidential Secretariat)
Indonesian Government continues to accelerate national industrial downstreaming to improve energy security, create job opportunities, and boost economic growth. The meeting led by President Prabowo Subianto at the Merdeka Palace, Jakarta, Monday (03/03) has resulted in the settlement of 21 downstreaming projects in the first phase with total investment reaching US$40 billion.
Minister of Energy and Mineral Resources Bahlil Lahadalia explained that these projects include various strategic sectors, such as oil and gas, mining, agriculture, and marine resources. “We have decided that in the first phase of dowstreaming, we are aiming to realize investment worth around US$618 billion. In 2025, as we have explained, we aim to carry out about 21 downstreaming projects in the first phase with total investment reaching approximately US$40 billion. We have discussed it in detail, including the investment projects that we will carry out,” Bahlil said in his press statement after the meeting.
One of the main projects is the establishment of oil storage in Nipah island in order to improve national energy security. The oil storage is aimed at fulfilling the national need for 30 days in accordance with the mandate of the Presidential Regulation.
In addition, the Government will also build an oil refinery with the capacity of 500 thousand barrels per day that will become one of the biggest oil processing facilities in Indonesia. The project is aimed at ensuring a more stable domestic energy supply and reducing dependence on imports.
In coal gasification sector, the Government has aimed to boost Dimethyl Ether (DME) production as the substitute of LPG. According to Bahlil, the current DME projects will be carried out with a different approach, by relying on domestic resources without dependence on foreign investors.
“At this moment, we do not need foreign investors since the President has instructed us to use domestic resources. What we need from them is their technology. Meanwhile, all the money and the capex are provided bythe Government and national private enterprises, the raw materials are domestically sourced, and the offtakers are locals,” he stated firmly.
Bahlil mentioned that the DME projects will be developed parallelly in South Sumatra, East Kalimantan, and South Kalimantan. In addition to the DME projects, the Government will also increase added value in mining sector, such as copper, nickel, and bauxite that will be processed into alumina. Downstreaming is also prioritized in fisheries, agriculture, and forestry sectors.
Furthermore, President Prabowo has set 26 commodity sectors as national downstreaming priorities, covering mineral, oil and gas, fisheries, agriculture, plantation, and forestry. In addition to strengthening national energy security and industry, the downstreaming is aimed at creating job opportunities for Indonesian people.
“It will certainly create many job opportunities. The figures are quite significant. We will announce them in another opportunity. As a matter of fact, we will surely blend labor-intensive and technology-intensive industries. Certainly, the investment is aimed at creating quality job opportunities, creating added values, and increasing our state income and national economic growth,” Bahlil said.
The Government believes that with comprehensive planning and firm support from various elements, the dowstreaming projects will make positive impacts on our national economy and strengthen Indonesia’s position in the global supply chain. (BPMI of Presidential Secretariat/DNS) (AW/TM)
