Indonesia to launch 18 downstreaming projects involving Rp 600 trillion investment next year

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Indonesia plans to launch 18 downstream chemical industry projects in 2026, with a total investment of more than 600 trillion rupiah, which is expected to create 270,000 jobs.The Minister of Energy and Mineral Resources said the project is in line with President Prabowo's directive to accelerate the downstreaming process in the fisheries, agriculture and energy-mineral sectors.

67% of these projects are located outside Java to promote balanced regional development. Key projects include:West Kalimantan Aluminum Smelter (Rp 60 trillion), Multi-Location Coal to DME Project (Rp 164 trillion), Central Sulawesi Nickel and Stainless Steel Industry (Rp 38.4 trillion), East Java Copper Products Processing (Rp 19.2 trillion).There is also Papuan iron ore development (19 trillion rupiah), a national oil refinery (160 trillion rupiah) and oil storage facilities (72 trillion rupiah).

Special promotion by the GovernmentDimethyl ether (DME) is used as an ingredient in liquefied petroleum gas (LPG).LPG) alternativesto reduce energy import dependence. The current annual demand for LPG in Indonesia is about1.2 million tons, which is expected to reach 10 million tons by 2026, there is an urgent need to build a domestic energy industry.

The project, for which a feasibility study was conducted by the investment management agency Dana Nusantara (Danantara), coversMineral processing, value-added agricultural products (e.g. coconut, palm oil, seaweed) and new energy sources (integrated solar modules)), among others, aimed at promoting economic growth, job creation and substitution of imported products.

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