Indonesia plans to launch 18 downstream industry projects in 2026, with a total investment exceeding 600 trillion rupiah, expected to create 270,000 jobs. The Minister of Energy and Mineral Resources stated that the projects align with President Prabowo's directive to accelerate downstreaming in the fisheries, agriculture, and energy and mineral sectors.
67% of these projects are located outside Java Island to promote regional balanced development. Key projects include: West Kalimantan aluminum smelter (60 trillion rupiah), multiple coal-to-dimethyl ether projects (164 trillion rupiah), Central Sulawesi nickel stainless steel industry (38.4 trillion rupiah), East Java copper product processing (19.2 trillion rupiah). Also Papua iron ore development (19 trillion rupiah), national oil refinery (160 trillion rupiah), and oil storage facilities (72 trillion rupiah). The government is particularly promoting dimethyl ether (DME) as a substitute for liquefied petroleum gas (LPG) to reduce energy import dependence. Indonesia's current annual LPG demand is about 1.2 million tons, expected to reach 10 million tons by 2026, urgently requiring the development of the domestic energy industry. The project is being studied for feasibility by the investment management agency Dana Nusantara (Danantara), covering mineral processing, agricultural product value addition (such as coconut, palm oil, seaweed), and new energy (integrated solar modules), aiming to promote economic growth, create jobs, and replace imported products.