ASIATODAY.ID, JAKARTA — Indonesia is accelerating a new chapter of industrial transformation as BPI Danantara Indonesia advances 26 strategic downstream projects valued at IDR225 trillion (approximately US$13.5 billion), aimed at creating higher-value industries, expanding employment, and strengthening the country’s position in global supply chains.
The ambitious investment program reflects Indonesia’s long-term strategy to move beyond raw commodity exports and build a more competitive industrial economy based on value-added processing, advanced manufacturing, and sustainable industries.
The projects are projected to create around 37,833 jobs and cover strategic sectors ranging from critical minerals and energy transition to food industries.
For Southeast Asia’s largest economy, the initiative represents a major step toward becoming a regional industrial hub while capturing greater economic value from its abundant natural resources.
“Downstreaming is not only about attracting investment. It is about creating jobs, accelerating regional economic growth, and ensuring that the value generated from Indonesia’s resources remains within the country,” Dony Oskaria, Chief Operating Officer of Danantara Indonesia, said.
A $13.5 Billion Industrial Transformation Agenda
Danantara’s downstreaming program is being implemented through two major phases.
The first phase, launched through groundbreaking activities in February 2026, includes six priority projects across 13 locations with total investment of IDR109 trillion and an estimated 11,456 employment opportunities.
The second phase, launched in April 2026, covers 10 priority projects across 13 locations, involving investment of IDR116 trillion and projected to generate 26,377 jobs.
Together, the projects form part of Indonesia’s broader industrial roadmap to strengthen domestic manufacturing capacity, develop strategic industries, and integrate the country deeper into global supply chains.
From Critical Minerals to Future Industries
A key focus of Danantara’s investment strategy is the development of industries linked to global economic transformation.
The projects include processing facilities for aluminium, stainless steel, and copper — strategic materials that support fast-growing sectors such as electric vehicles, renewable energy infrastructure, and advanced manufacturing.
Indonesia’s push for mineral downstreaming is designed to ensure that the country captures greater value from its natural resources while strengthening its role in global industrial networks.
Beyond minerals, Danantara is also supporting the development of future energy industries through bioavtur (sustainable aviation fuel) and bioethanol, aligning Indonesia’s industrial growth with global efforts toward cleaner energy.
The program also extends to food industries, including palm oil processing, coconut-based industries, and integrated poultry production to strengthen national food resilience.
Building a Global Investment Institution
Established under Law No. 1 of 2025, Danantara Indonesia was created as a strategic state investment institution with a mandate to optimize government investments and state-owned enterprise assets.
The institution is designed to operate with global investment standards while supporting Indonesia’s long-term economic transformation.
President Prabowo Subianto has emphasized that Danantara must develop into a world-class investment institution with strong governance, transparency, and a focus on creating sustainable value.
“Indonesia now has a state investment institution that can stand alongside global sovereign wealth funds. However, this is only the beginning. Strong governance and improved performance must continue so that state assets provide maximum benefits for the people,” President Prabowo said.
Expanding Global Partnerships and Investment Capacity
Through Danantara Asset Management (DAM), the institution is transforming state-owned enterprise portfolios through restructuring, consolidation, and strategic business development.
DAM is supporting downstream industrial initiatives with potential investment value of around US$26 billion, including alumina and bauxite processing, sustainable aviation fuel, bioethanol, integrated poultry industries, and industrial salt development.
Meanwhile, Danantara Investment Management (DIM) is expanding Indonesia’s global investment network by establishing 11 strategic international partnerships with combined investment commitments of approximately IDR346 trillion.
DIM has also strengthened national financing capacity by around IDR150 trillion through various global financial instruments, including co-investment arrangements, equity participation, bond issuance, and international credit facilities.
Indonesia’s Next Industrial Chapter
Indonesia’s downstream strategy represents more than an industrial investment program — it marks a fundamental transformation of the country’s economic model.
By combining natural resources, industrial capability, global partnerships, and sustainable development, Indonesia aims to build a more resilient economy with stronger participation in global value chains.
As competition intensifies for critical minerals, clean energy industries, and advanced manufacturing capacity, Indonesia is positioning itself not only as a resource-rich nation, but as an emerging industrial powerhouse in Asia.
Through Danantara, Indonesia is seeking to turn its natural wealth into lasting economic strength — creating industries, jobs, and greater value for future generations. (AT Network)
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