ASIATODAY.ID, CILACAP — The Indonesian government is accelerating its economic transformation through an aggressive downstreaming strategy, moving swiftly from planning to large-scale execution.
The second-phase groundbreaking of strategic energy and mineral projects, inaugurated by President Prabowo Subianto in Cilacap, Central Java, marks a shift toward full implementation.
The projects stem from feasibility studies prepared by the National Task Force for Downstreaming Acceleration and Energy Security, led by Energy and Mineral Resources Minister Bahlil Lahadalia. Once finalized, these studies were handed over to Badan Pengelola Investasi Daya Anagata Nusantara (Danantara) for execution as national strategic investments.
Bahlil emphasized that downstreaming is no longer confined to planning documents but has entered a decisive implementation phase.
“The feasibility studies prepared by the task force serve as a critical foundation to ensure that every downstream project is well-calculated, on target, and delivers maximum benefits for the state and the Indonesian people,” he said.
He added that once studies are completed, projects move immediately into execution.
“Once the FS is completed, these projects move into the implementation stage, and it becomes Danantara’s responsibility to ensure that investments proceed, projects are realized, and the benefits are felt by the public,” he stressed.
President Prabowo underscored a fundamental shift in Indonesia’s resource management paradigm, rejecting the long-standing reliance on raw commodity exports.
“We do not want to merely export raw materials. We want to process them domestically so that the added value is enjoyed by the Indonesian people,” the President said.
He also called for rigorous technological assessment and precision in project execution.
“Continue evaluating the technology. Look at it mathematically—mathematically, mathematically,” he urged.
Meanwhile, Danantara CEO Rosan Roeslani highlighted the broader economic impact of the downstreaming push.
“We are consistently coordinating with the Minister of Energy and the task force to ensure these downstream projects are implemented promptly to create added value, build industries, and generate employment,” he stated.
The first phase of projects included alumina smelters in Mempawah, bioavtur production from used cooking oil in Cilacap, and bioethanol facilities in Banyuwangi.
The second phase significantly expands the scope, covering gasoline refinery development in Cilacap and Dumai, fuel storage facilities in multiple regions, coal-to-DME (Dimethyl Ether) processing in Tanjung Enim, as well as downstream projects in nickel, carbon steel, Buton asphalt, copper, gold, and palm-based biodiesel.
Notably, the gasoline refinery projects are expected to reduce Indonesia’s fuel imports by around 10 percent of national demand, with a production capacity of approximately 153,000 kiloliters per year.
Meanwhile, the DME project is seen as a strategic move to cut reliance on LPG imports, which currently account for roughly 80 percent of domestic consumption.
Through this accelerated rollout, the government is reaffirming its commitment to industrialization, energy security, and a downstream-driven economic transformation—laying the foundation for a more self-reliant and prosperous Indonesia. (AT Network)
Follow Us at Google News and WA Channel