Government to Develop 21 Downstream Projects Worth $45 Billion in 2025

The Indonesian government is set to accelerate 21 key downstream projects in 2025, with a total investment of $45 billion (approximately IDR 738 trillion, based on an exchange rate of IDR 14,400 per USD). This was announced by Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, after attending a limited meeting on downstream industry led by President Prabowo Subianto at the Presidential Palace on Monday (March 3, 2025).

Bahlil stated that the government aims to attract a total investment of $618 billion (around IDR 8,892 trillion) in the long term. However, for the initial phase, 21 projects will be prioritized for execution.

"We presented approximately 21 projects in the first phase, with a total investment of around $45 billion. During the meeting, we discussed these projects in detail, including the specific investments that will be undertaken," said Bahlil.

Key Projects: Oil Storage, Refinery, and Coal Gasification

Several strategic downstream projects are set to commence soon. One major initiative is the construction of crude oil storage facilities, aimed at enhancing national energy reserves. This project is expected to increase fuel stockpiles for up to 30 days.

"According to the Presidential Regulation, crude oil storage must be increased to 30 days to strengthen our national energy security. One proposed location for this project is Nipah Island, Batam," Bahlil explained.

Additionally, the government plans to build a large-scale oil refinery with a capacity of 500,000 barrels per day. This will be Indonesia's largest refinery, designed to boost fuel production and reinforce energy resilience.

Another major project is coal gasification, specifically the Dimethyl Ether (DME) initiative, which aims to serve as a substitute for imported LPG.

"We will develop DME facilities using low-calorie coal as a substitute for LPG. This will ensure that domestic products can effectively replace imports," Bahlil added.

Beyond energy, critical mineral downstreaming is also part of the 21 priority projects, covering copper, nickel, and bauxite. Additionally, the government is accelerating downstreaming efforts in the agriculture and fisheries sectors to enhance the value of domestic products.

Danantara to Support Downstream Project Financing

Minister of Investment and Downstreaming, as well as CEO of the Daya Anagata Nusantara Investment Management Agency (Danantara), Rosan Roeslani, confirmed that the government's accelerated downstream projects will receive financial backing from Danantara.

However, he emphasized that all relevant ministries still need to refine project details, particularly in assessing investment feasibility and evaluating economic impact and job creation.

"These investments must yield acceptable and sustainable returns, as many will be funded through Danantara," Rosan stated.

He further assured that the investment process will follow proper procedures, including due diligence by the Ministry of Investment.

"Danantara will undergo a rigorous and transparent investment process, in line with our national industrialization goals," he concluded.

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