Jakarta (VNA) – The Indonesian government on April 29 officially broke ground on 13 downstream (deep-processing) projects with a total investment of up to 116 trillion IDR (6.68 billion USD) in a major push to strengthen national energy and mineral security.
The move also aims to realise the ambition of energy self-reliance and reduce dependence on imported supplies amid increasingly global geopolitical uncertainties.
Under the leadership of Indonesia’s sovereign wealth manager Danantara, the energy sector is witnessing a series of landmark projects. Notably, new gasoline refining facilities are being built at the Dumai and Cilacap complexes under the state oil and gas group Pertamina. Once operational in 2030, these facilities are expected to cut gasoline imports by up to 2 million kilolitres, saving the state budget of 1.25 billion USD annually.
The Southeast Asian nation is also accelerating the construction of a coal gasification plant to produce dimethyl ether in Tanjung Enim, with a capacity of 1.4 million tons, aimed at replacing imported liquefied petroleum gas (LPG), which currently accounts for up to 80% of domestic consumption.
CEO of Danantara Rosan Roslani said the strategy also encompasses large-scale downstream mineral processing projects. Key components include a 1.2 million-tonne-per-year stainless steel facility in Morowali; modernising a 1.5 million-tonnes billet steel plant in Cilegon; expanding asphalt production capacity in Buton from 5,000 to 300,000 tonnes by 2030, and brass processing plants in Gresik.
Addressing the groundbreaking ceremony, Indonesian President Prabowo Subianto emphasised that downstream processing is the key to achieving greater prosperity.
This marks Indonesia’s second major groundbreaking ceremony this year, following a series of 7-billion-USD projects in February. The downstreaming strategy is regarded as a cornerstone of President Prabowo’s Asta Cita agenda, aimed at achieving 8% economic growth, enhancing export value, and reinforcing national sovereignty over natural resources./.
