ASIATODAY.ID, JAKARTA – Indonesia is accelerating the downstream processing of its natural resources through concrete investment commitments.
Most recently, the Indonesia Sovereign Wealth Management Agency (Danantara Indonesia) announced a USD38.63 billion investment to support strategic downstream projects—primarily in the mineral and coal (minerba) sectors.
Out of this total, USD20.1 billion will be allocated to eight priority downstream mineral projects, including the development of the Buton asphalt industry in Southeast Sulawesi, which is expected to reduce reliance on imported asphalt and stimulate local economic growth.
This commitment was marked by the formal handover of 18 pre-feasibility study documents from Minister of Energy and Mineral Resources and Chairman of the National Downstream Acceleration Task Force, Bahlil Lahadalia, to Danantara Indonesia CEO Rosan Roeslani, at the ESDM Ministry Office in Jakarta on Tuesday, July 22, 2025.
“Of the 18 projects, the mineral sector dominates, and this doesn’t yet include electric vehicle battery initiatives,” Bahlil stated.
Priority Downstream Mineral Projects Funded by Danantara:
1. Aluminum smelter – Mempawah, West Kalimantan
2. Dimethyl ether (DME) industry – Bulungan, Muara Enim, PALI
3. Buton asphalt industry – Buton, Southeast Sulawesi
4. Manganese sulfate industry – Morowali, Central Sulawesi
5. Stainless steel slab production
6. Copper derivative industry – Gresik, East Java
7. Iron and steel industry – Sarmi, Papua
8. Chemical grade alumina industry – Kendawangan, West Kalimantan
Bahlil emphasized that these projects are expected to create hundreds of thousands of direct and indirect jobs, while promoting economic equity outside Java.
“Downstreaming isn’t just about value creation, it’s about interregional economic justice. These are quality jobs—not minimum wage,” he added.
Total Investment Reaches IDR618 Trillion, Danantara Secures Global Funding
Beyond the minerba sector, Danantara’s investment portfolio also includes projects in energy transition, agriculture, and marine and fisheries. The total value across all sectors amounts to USD38.63 billion or approximately IDR618.13 trillion.
Danantara CEO Rosan Roeslani revealed that the agency has secured USD7 billion in funding commitments from global sovereign wealth funds, including: Qatar Investment Authority – USD4 billion, China Investment Corporation – USD2 billion, and Russian Direct Investment Fund – undisclosed amount.
“Downstream projects currently account for around 30% of national investment in this semester, and that figure is steadily rising,” Rosan noted.
One of the standout projects is the Buton asphalt industry, which holds strong potential to support Indonesia’s infrastructure development agenda while reducing dependence on imported asphalt. With the nation’s largest natural asphalt reserves, Buton is positioned to become a national asphalt production hub, while generating thousands of new jobs in Southeast Sulawesi.
Danantara also pledged full alignment with the Downstream Acceleration Task Force for the execution of its projects—ensuring smooth implementation, efficient financing schemes, licensing, and mitigation of social and environmental risks.
With backing from Qatar, China, and Russia, Danantara’s investment marks a turning point in Indonesia’s efforts to industrialize its resource economy and move toward a more resilient, equitable, and self-reliant economic future. (AT Network)
Follow Us at Google News and WA Channel