A new phase of downstreaming projects is underway, aiming to bolster energy security and potentially create up to 600,000 jobs, according to statements made on Wednesday by Rosan Roeslani, CEO of Danantara Investment Management Agency.
Downstreaming Projects Expand
The second phase encompasses 13 projects spanning the energy and mineral sectors. A key component is the construction of a facility to process coal into dimethyl ether (DME), intended as a substitute for imported Liquefied Petroleum Gas (LPG). Currently, approximately 80 percent of the nation’s LPG supply is imported.
These projects are being undertaken by state-owned enterprises (SOEs) including Pertamina, MIND ID, and Krakatau Steel, with Danantara providing financial support and accelerating implementation. The projects are divided into five in the energy sector, five in the mineral sector, and three supporting industrial and technological development.
Future Expansion Planned
Looking ahead, a third phase of downstreaming is already under consideration, potentially involving around six additional projects. The estimated value of these future projects could reach approximately US$10 billion. This next phase is expected to broaden the scope beyond energy and minerals to include sectors like plantations and aquaculture.
Rosan Roeslani emphasized that all downstreaming programs will be carried out with a focus on good governance and careful planning. The government anticipates that these efforts will be a key pillar in strengthening energy security, reducing imports, and enhancing the competitiveness of the national industry. Import reductions from these projects could reach around US$3.4 billion per year.
Frequently Asked Questions
What is the primary goal of the second phase of downstreaming?
The primary goal is to strengthen energy security and create up to 600,000 jobs.
Which sectors are included in the current phase of downstreaming?
The projects cover the energy and mineral sectors, with additional projects related to industrial and technology support.
What is the estimated value of the proposed third phase of downstreaming?
The estimated value of the third phase could reach around US$10 billion.
As Indonesia continues to develop its downstreaming initiatives, will these projects deliver on their promise of economic growth and energy independence?
