Minister of Energy and Mineral Resources, Bahlil Lahadalia, reported that investments in the downstream programs of the mineral, coal, oil, and gas sectors accounted for 91.7% of the total downstream investment program. The combined investment in these four sectors reached USD 566.7 billion or approximately IDR 9,067 trillion.
 

Bahlil explained that investments in the mineral and coal (minerba) sector are estimated at USD 498.4 billion, while the oil and gas sector attracted USD 68.3 billion. These sectors are expected to generate 2.06 million jobs over the next 15 years, or 137,584 jobs annually.
 

Thus, according to Bahlil, the investment per job in the mineral and energy sectors stands at USD 274,595 or around IDR 4.39 billion. “This contributes to the creation of high-quality jobs domestically. Minimum wage is important, but national per capita income will not reach USD 10,000 by simply relying on minimum wage increases,” said Bahlil at the BeritaSatu Outlook 2025 event on Thursday, January 30.
 

Bahlil projected that by 2040, the contribution of all downstream investments in the mineral and energy sectors to the national economy will reach USD 209 billion. Export value during the same year is estimated to hit USD 743 billion. He emphasized that the downstream program is crucial in transforming the national export trend from raw materials to finished goods. This initiative will also enhance the contribution of renewable energy to the national energy portfolio.
 

Bahlil noted that the contribution of renewable energy to total energy production last year was only 14%, falling short of the government’s target of 23%.
 

He stressed that renewable energy will primarily serve the manufacturing sector. The increase in renewable energy-based manufacturing products can still be absorbed by the global market.
 

“If renewable energy is used for household purposes, it will result in over-cost. That additional cost will ultimately be borne directly by the public or through government subsidies,” he explained.
 

Bahlil, who also serves as Chair of the National Task Force for Accelerating Downstream Development and Energy Security, has identified four additional sectors to be prioritized for downstream development: agriculture, forestry, marine, and fisheries.
 

The goal of downstream development in these sectors is to strengthen national energy security and support sustainable economic growth. Presidential Decree No. 1 of 2025 on the Task Force for Accelerating Downstream Development and National

Energy Security highlights downstream programs as a strategic step to boost investment and create added value within the country.
 

“We have formulated strategic steps to implement President Prabowo’s directives to increase investment and downstream development. The Ministry of Energy and Mineral Resources will serve as the operations center for the task force over the next five years, pending further instructions from the President,” Bahlil stated in a press release issued earlier on Monday, January 20.
 

The task force is committed to ensuring that the implementation of downstream policies directly benefits the public, including job creation and improved welfare. “The added value must truly be felt within Indonesia,” Bahlil emphasized.
 

The Ministry of Energy and Mineral Resources noted that the task force will report on the progress of its tasks to the President every six months or as needed. This measure aims to accelerate the realization of downstream programs and achieve energy equity across Indonesia.
 

Bahlil also highlighted that greater involvement from domestic financial institutions could provide a significant opportunity to strengthen the national financial sector while promoting economic self-reliance. The task force has mapped strategic opportunities in the energy sector to involve more domestic industry players.
 

One key focus is accelerating the use of biodiesel based on crude palm oil (CPO). “We have reached B40 levels, and by 2026, it is targeted to increase to B50, as directed by the President,” he concluded.
 

This article is published in partnership with Katadata
Original article here