Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that he has received instructions from President Prabowo Subianto to add 13 new downstreaming projects. These additional projects will require a total investment of around IDR 239 trillion. 

“The government is adding 13 downstreaming projects with a total investment of approximately IDR 239 trillion, and we will proceed with finalizing them,” Bahlil said after attending a limited meeting with President Prabowo Subianto in Hambalang, Bogor, West Java, as quoted from the Presidential Secretariat’s YouTube channel broadcast on Thursday, March 26. 

He explained that these additional projects are a continuation of the first phase of downstreaming, which consists of 20 projects, some of which have already entered the groundbreaking stage. 

“For the first phase of downstreaming, out of the 20 projects, some have already begun groundbreaking, while others are scheduled to start next month,” Bahlil added. 

These various downstreaming projects, focusing on natural resource commodities, are expected to increase value-added output and strengthen the competitiveness of domestic industries. However, Bahlil did not provide further details regarding the 13 additional projects. 

He only noted that the President has instructed the acceleration of alternative energy development as part of efforts to strengthen national energy security. According to Bahlil, Prabowo emphasized the need to optimize all energy potential, ranging from ethanol and palm oil-based biodiesel or crude palm oil (CPO), to renewable energy. 

“This includes how to encourage energy transition through renewable energy,” Bahlil said. 

The Golkar Party Chairman stated that the government’s targets this year include accelerating downstreaming, ensuring a smooth energy transition, and regulating coal production to maintain affordable prices. 

“Ideally, we want coal prices to be strong, production to be high and stable. However, if that is not possible, we should not sell our resources cheaply. Supply and demand must remain within a healthy balance,” Bahlil said. 

Previously, the Daya Anagata Nusantara Investment Management Agency (Danantara) had conducted the groundbreaking of six downstreaming projects on February 6. These projects, covering the mineral, energy, and agroindustry sectors, are valued at USD 7 billion. 

Danantara Head Rosan Roeslani stated that all these projects are financed by Danantara. He noted that last year, downstreaming projects accounted for 30% of total foreign investment entering Indonesia, reaching IDR 584.1 trillion. 

The six projects include an aluminum smelter in West Kalimantan, a bioethanol plant in East Java, a bioavtur (sustainable aviation fuel) plant in Central Java, a salt production facility in Madura, an alumina smelter in West Kalimantan, and the development of an integrated poultry industry. 

The poultry downstreaming project involves 30 processing facilities across six provinces in Indonesia, namely East Java, Gorontalo, Lampung, South Sulawesi, East Kalimantan, and West Nusa Tenggara. 

This article is published in partnership with Katadata   

Original article here