Minister of Energy and Mineral Resources, Bahlil Lahadalia, announced that the government is preparing 13 additional downstream (value-added) projects with a total investment value of approximately Rp239 trillion.
The announcement was made after attending a limited meeting with President Prabowo Subianto in Hambalang, West Java, on Wednesday (March 25, 2026).
According to Bahlil, these additional projects complement the previously announced 20 first-phase downstream projects, some of which have already entered the groundbreaking stage, while others are scheduled to begin soon.
“We are adding 13 more downstream projects with a total investment of around Rp239 trillion, which are currently being finalized,” Bahlil stated.
Acceleration of Alternative Energy Development
During the meeting, the government also discussed accelerating the development of alternative energy sources. President Prabowo instructed that all potential energy sources, including biofuels and renewable energy, should be developed more rapidly.
This includes initiatives such as bioethanol production, biodiesel from crude palm oil (CPO), and broader efforts to accelerate the energy transition.
Initial Downstream Projects
Previously, Indonesia’s sovereign investment agency, BPI Danantara, conducted groundbreaking ceremonies for several early-stage downstream projects in the energy sector, including:
- Aluminum smelter and alumina refinery (SGAR) in Mempawah, West Kalimantan
- Bioavtur refinery in Cilacap, Central Java, with a capacity of around 6,000 barrels per day
- Bioethanol plant in Glenmore, Banyuwangi, with a capacity of 30,000 kiloliters per year
- Integrated poultry farming projects across multiple regions with expansion plans up to 30 locations
- Salt processing and MVR facilities in Gresik and Madura with a capacity of up to 200,000 tons per year
National Priority Downstream Projects
In total, the government has identified 18 priority downstream and energy resilience projects with a combined investment value of approximately US$38.63 billion (Rp640.4 trillion).
These projects span multiple strategic sectors, including:
- Mining and minerals (minerba): aluminum smelters, coal-to-DME, stainless steel, and copper processing
- Agriculture: oleoresin, oleofood, and coconut-based industries
- Marine and fisheries: salt processing, fish fillet, and carrageenan production
- Energy security: oil refineries and storage infrastructure
- Energy transition: integrated solar modules and bioavtur from used cooking oil
The projects are distributed across various regions in Indonesia, including Kalimantan, Java, Sumatra, Sulawesi, Nusa Tenggara, and Papua.
National Downstream Strategy
This downstream development program is part of the government’s broader strategy to increase the value-added of natural resources, strengthen energy security, and accelerate domestic industrial growth.
With the addition of these 13 new projects, the government aims to further accelerate Indonesia’s economic transformation toward a more industrialized and sustainable economy.