Jakarta – Indonesia’s push to boost its economy through increased domestic processing of raw materials took a major step forward Friday with the simultaneous commencement of construction on six downstream industry projects across the archipelago. The $7 billion investment, spearheaded by the nation’s sovereign wealth fund Danantara, reflects President Prabowo Subianto‘s commitment to adding value to Indonesia’s natural resources and creating new economic opportunities [[1]]. The projects, ranging from aluminum smelters to bioethanol plants, are expected to generate critically important employment and contribute to the country’s ambitious economic goals [[3]].
Jakarta –
Indonesia’s sovereign wealth fund, Badan Pengelola Investasi (BPI) Daya Anagata Nusantara (Danantara), has commenced construction on six downstream industry projects simultaneously across the country, marking a significant step in President Prabowo Subianto’s administration’s prioritization of resource value-added processing.
The projects are located in Cilacap, Central Java, as well as in Malang, Gresik, and Banyuwangi in East Java, and Mempawah, West Kalimantan. Danantara CEO Rosan Roeslani announced Friday that the total investment across all six projects will reach $7 billion, equivalent to Rp 118.14 trillion based on an exchange rate of Rp 16,878.
“The total investment for these six downstream projects announced today amounts to $7 billion,” Roeslani stated at a groundbreaking ceremony held at Wisma Danantara in South Jakarta on February 6, 2026.
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Roeslani emphasized that these projects are expected to generate substantial returns and, crucially, create significant employment opportunities. He expressed confidence that the program will have a positive impact on the Indonesian economy moving forward.
“This program will not only deliver strong returns but also, importantly, create jobs and add value, which will positively impact Indonesia’s economic growth,” Roeslani explained.
The 2025 downstream projects represent 30%, or approximately Rp 584.1 trillion, of the total investment. This marks a 43.3% increase in contribution compared to downstream investments in the previous year.
“Downstream investment is steadily increasing. Previously, these projects were largely concentrated in North Maluku and Sulawesi, but we anticipate a broader geographic distribution going forward,” Roeslani added.
Details of the Six Groundbreaking Downstream Projects:
1. Construction of an Aluminum Smelter in Mempawah, West Kalimantan
2. Construction of a Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan.
3. Construction of a bioethanol plant in Cilacap, Central Java
4. Construction of a bioavtur plant in Cilacap, Central Java
5. Development of an integrated poultry facility in Malang, Gorontalo, Lampung, South Sulawesi, East Kalimantan and Sumbawa
6. Construction of a salt factory in Gresik
(ahi/hal)
