Indonesian President Prabowo Subianto inaugurated the groundbreaking ceremony for 13 downstream projects across Indonesia. These projects are primarily being developed by state-owned enterprises (SOEs) and their partners. He explained that this ceremony marks the second phase of the downstreaming program, consisting of 13 projects with a total investment of IDR 116 trillion, including five energy projects, five mineral projects, and three agricultural projects.
“As mentioned earlier, the first phase of downstreaming involved 13 projects in 13 locations, and this year we will add six more projects, and we will continue to expand. There may be a fourth, fifth, or sixth phase, God willing, this year,” he stated at the inauguration in Cilacap on Wednesday (April 29, 2026).
He emphasized that downstreaming natural resources is the key to achieving greater prosperity and affirmed that the government will continue expanding such initiatives nationwide. One of the Phase 2 projects attracting attention is the development of coal into Dimethyl Ether (DME) in Tanjung Enim. The project was initiated by BPI Danantara and implemented by MIND ID in collaboration with PT Bukit Asam Tbk, Pertamina, and other strategic partners. It is expected to substitute imported LPG, given Indonesia’s high dependence on imported energy.
The following is a simplified list of the 13 Phase 2 downstream projects and their respective project owners:
Projects 1–2: Construction of Gasoline Refinery Facilities. State-Owned Enterprise (BUMN) Holding: PT Pertamina (Persero). Location: Dumai and Cilacap: 1) expansion of refinery capacity by 62 MBSD, targeted to be operational in Q4 2030; 2) reduces gasoline imports and strengthens national energy security.
Projects 3–4–5: Construction of Operational Fuel Tanks. State-Owned Enterprise (BUMN) Holding: PT Pertamina (Persero). Locations: Palaran, Biak, and Maumere: 1) development of fuel terminals with a total additional capacity of 153,000 KL; 2) enhances fuel distribution reliability, especially in Eastern Indonesia.
Project 6: Coal Processing Facility to Become DME. State-Owned Enterprises Holding: PT Pertamina (Persero) and PT Mineral Industri Indonesia (Persero). Location: Tanjung Enim: 1) development of a DME facility with a capacity of 1.4 million tons per year; 2) substitutes LPG imports and strengthens domestic energy security.
Project 7: Stainless Steel Manufacturing Facility from Nickel. State-Owned Enterprise Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Tsingshan Group. Location: Indonesia Morowali Industrial Park: 1) production of stainless steel slabs with a capacity of 1.2 million tons per year; 2) increases mineral value-added and supports industrial job creation.
Project 8: Carbon Steel Slab Production Facility. State-Owned Enterprise Holding/Partner: PT Krakatau Steel (Persero) Tbk. / Xin Hai Group. Location: Cilegon: 1) production capacity of 1.5 million tons per year through facility modernization; 2) strengthens industrial foundations and infrastructure development.
Project 9: Buton Asphalt Ecosystem and Production Facility. State-Owned Enterprises Holding: PT Wijaya Karya (Persero) Tbk. and PT Jasa Marga (Persero) Tbk. Location: Karawang: 1) increases Buton asphalt utilization significantly by 2030; 2) supports local resource optimization and job creation.
Project 10: Copper and Gold Downstream Processing. State-Owned Enterprises Holding: PT Mineral Industri Indonesia (Persero) and PT Len Industri (Persero). Location: Gresik: 1) development of metal processing facilities with higher value-added products; 2) strengthens strategic industries and creates skilled employment.
Project 11: Palm Oil Processing into Oleofood and Biodiesel. State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero). Location: Sei Mangkei: 1) development of downstream palm oil products including biodiesel; 2) improves farmer welfare and supports energy security.
Project 12: Nutmeg Oleoresin Processing Facility. State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero). Location: Central Maluku: 1) establishment of a nutmeg processing facility; 2) enhances regional economic value and farmer income.
Project 13: Integrated Coconut Facility. State-Owned Enterprise Holding: PT Perkebunan Nusantara III (Persero). Location: Central Maluku: 1) development of integrated coconut-based products such as MCT and coconut flour; 2) expands export opportunities and increases farmer income.
April 29, 2026, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20260429123019-4-730879/13-proyek-hilirisasi-rp116-t-mulai-dibangun-ini-pemiliknya)