The Downstream Program Expands Employment Opportunities, Absorbing Hundreds of Thousands of Workers
Jakarta – The government will develop 18 priority downstream projects with an investment value of US$38.63 billion, equivalent to Rp 618.13 trillion. These strategic projects are projected to create 276,636 jobs in various sectors, including mineral and coal, agriculture, maritime affairs and fisheries, energy transition, and energy security.
The project’s pre-feasibility study (pre-FS) document was submitted by the Task Force for the Acceleration of Downstreaming and Energy Resilience to the Daya Anagata Nusantara Investment Management Agency (Danantara).
BPI Danantara Chief Executive Officer, Rosan Perkasa Roeslani, explained that downstreaming is not only oriented towards increasing the added value of natural resources, but also has a significant impact on creating quality jobs.
“These 18 projects will create more than 270,000 jobs, as one of our primary tasks is to ensure that every investment we make generates quality job opportunities,” he said.
Rosan explained that the mineral and coal sector is estimated to absorb 104,974 workers, the agricultural sector 23,950 workers, the maritime and fisheries sector 67,100 workers, the energy transition sector 29,652 workers, and energy security 50,960 workers.
The Head of the Downstream Task Force, who is also the Minister of Energy and Mineral Resources, Bahlil Lahadalia, emphasized that this step is a follow-up to President Prabowo Subianto’s directives in several limited meetings.
“So, this isn’t perfect yet; it’s just pre-FS. Of course, we’ll leave the improvements to Danantara, as they have the resources to continue this study,” Bahlil explained.
A number of priority projects include the Aluminum Smelter Industry (Bauxite) in Mempawah, West Kalimantan, worth Rp 60 trillion with the potential for 14,700 jobs; the DME (Coal) Industry in several locations including Bulungan and Muara Enim with a value of Rp 164 trillion and the potential for 34,800 workers; and the Stainless Steel Slab Industry (Nickel) in Morowali, Central Sulawesi, worth Rp 38.4 trillion which will absorb 12,000 workers.
This downstreaming program is expected to not only expand employment opportunities but also strengthen national economic resilience through industrialization and increased added value of domestic natural resources. With massive investment support, the government is optimistic that downstreaming will become a driving force for sustainable economic growth while improving the welfare of communities in various regions. ()
