Jakarta – The government has reaffirmed its commitment to accelerating the national downstreaming agenda as a key strategy to increase industrial value added and strengthen economic resilience. President of the Republic of Indonesia, Prabowo Subianto, is scheduled to conduct groundbreakings for six strategic downstreaming projects in January 2026.
The confirmation was delivered by Minister of State Secretary Prasetyo Hadi after attending the Red and White Cabinet Retreat in Hambalang. Prasetyo said the six projects represent the initial phase of a total of around 18 downstreaming projects that have been agreed upon by the government and will be developed in stages through March 2026.
“In January, six groundbreakings from the downstreaming program are planned. This will then be followed in February and March to complete approximately 18 programs that we have agreed upon,” Prasetyo said.
According to Prasetyo, these projects are urgent as they are directly related to environmental and public health issues. One of the projects receiving particular government attention is the development of waste-to-energy facilities.
“These facilities will be built in 34 regencies and cities that are currently facing waste problems with volumes exceeding 1,000 tons per day. This needs to be addressed immediately so that waste does not continue to accumulate and cause various problems,” he stressed.
In addition, the government is also preparing downstreaming projects in the energy sector, including the development of coal gasification facilities to produce dimethyl ether (DME). This project is considered strategic for strengthening national energy security while reducing dependence on energy imports.
President Prabowo also specifically discussed the progress of downstreaming projects with the CEO of Danantara Indonesia, Rosan Roeslani, during a meeting in Hambalang. The meeting covered five to six projects that are ready for groundbreaking in early 2026, with a total investment value of up to US$6 billion, or approximately Rp100 trillion.
“These programs will be carried out in several provinces across Indonesia and are expected to generate tangible economic impacts, both in terms of investment and job creation,” Rosan explained.
Rosan previously revealed that several projects scheduled to begin construction include the Smelter Grade Alumina Refinery (SGAR), a bioavtur plant in Cilacap, and a bioethanol plant in Banyuwangi.
“All of these projects are part of 18 new downstreaming initiatives designed to strengthen the national industrial supply chain,” he added.
Meanwhile, Director of Downstreaming Strategy and Minerals at Mining Industry Indonesia (MIND ID), Tedy Badrujaman, expressed appreciation for the progress of PT Vale Indonesia Tbk’s nickel downstreaming project in Pomalaa, Southeast Sulawesi. He said the project shows significant progress and reflects the seriousness of the government and industry players in implementing the downstreaming agenda.
“Downstreaming is a crucial foundation for sustainable economic growth, as it is able to create added value, open up employment opportunities, and strengthen the competitiveness of the national industry,” Tedy concluded.