The Government is Accelerating 18 Downstream Projects Worth Rp618 Trillion to Expand Employment Opportunities
Jakarta – Energy and Mineral Resources Minister Bahlil Lahadalia stated that the government continues to boost investment in the downstream sector as part of its strategy to strengthen energy security and create national jobs.
A total of 18 downstream projects worth Rp618.13 trillion are now entering the evaluation stage by BPI Danantara, as a demonstration of the government’s seriousness in following up on the President’s mandate to encourage national downstreaming.
“We already have around 18 projects ready for pre-financing, Mr. Head of Danantara, with a total investment of US$38.63 billion, or around Rp618.13 trillion. This is in addition to the dedicated car battery ecosystem that will be developed as directed by the President,” Bahlil said.
The government is developing strategic cross-sector downstreaming projects as a concrete step to accelerate national economic transformation and equitable development.
Specifically, downstream mineral and coal projects represent the sector with the largest investment share, with eight projects valued at US$20.1 billion. These projects are projected to employ over 100,000 workers.
“Of the 18 projects, eight are in the minerals and coal sector, two are energy transition projects, two are energy security projects, three are agricultural projects, and three are maritime and fisheries projects. This will create good jobs with decent wages, beyond just the minimum wage,” Bahlil explained.
Based on an initial study by the National Downstream and Energy Security Task Force, the entire project is estimated to be able to create up to 276,636 direct and indirect jobs.
The agricultural sector has the potential to absorb 23,950 workers, while the maritime and fisheries sector could employ around 67,100 workers. The energy transition sector is estimated to employ 29,652 workers, and energy security 50,960 workers.
Meanwhile, Danantara CEO Rosan Roeslani added that the increase in investment in the downstream sector shows a positive trend and will be an important pillar in future national development.
“The investment contribution from the downstream sector is very significant. Of the total investment inflow this semester, around 30 percent came from downstream projects,” said Rosan.
He also mentioned that in the past four months, Danantara has obtained funding commitments from a number of global Sovereign Wealth Funds (SWFs) totaling US$7 billion, including from Qatar, the China Investment Corporation (CIC), and the Russian Direct Investment Fund (RDIF).
“We will focus on projects with significant potential for job creation in the early stages. This aligns with our mandate to support sustainable development in Indonesia,” Rosan concluded.
