Three Downstreaming Projects Under Prabowo to Begin Construction in January 2026
Wed 17 Dec 2025, 05:42 AM
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At least 5–6 downstreaming projects will break ground in early 2026. Construction is planned to proceed in stages starting January 2026. This was conveyed by the CEO of the Investment Management Agency (BPI) Danantara, Rosan Roeslani, when he met reporters at the Presidential Palace Complex on Wednesday (December 17, 2025).
It is known that the government intends to build 18 downstreaming projects through the Investment Management Agency (BPI) Daya Anagatha Nusantara (Danantara). These projects range from processing plants for mineral commodities and chemicals to plantation-based products.
“I also reported the month to the President earlier, but in early January we will do groundbreaking for 5–6 projects,” said Rosan.
“First, there is a Smelter Grade Alumina Refinery and an aluminum smelter. Then a bio-aviation fuel refinery in Cilacap, and a bioethanol plant in Banyuwangi,” he said.
Here are the details regarding the locations and investment values of the projects mentioned by Rosan:
1. Aluminum (Bauxite) Smelter, Mempawah, West Kalimantan
This project is an expansion of the processing plant operated by PT Indonesia Asahan Aluminium (Inalum), namely the Smelter Grade Alumina Refinery (SGAR) Phase 2 with a capacity of 1 million tons per year.
The project requires an investment of IDR 60 trillion and is expected to create 14,700 jobs. The processing plant will have a capacity of 1 million tons of alumina per year. The project is targeted for completion in 2028.
2. Bio-aviation Fuel Plant in Cilacap, Central Java
PT Kilang Pertamina International (KPI) is completing Phase 2 of the Cilacap Green Refinery to reach the 100% bio-aviation fuel projection target. The project is projected to be operational in 2027 with a capacity of 6,000 barrels of Hydrotreated Vegetable Oil (HVO).
This refinery processes vegetable oils into bio-aviation fuel. It has already successfully run trials at 9,000 barrels per day (BPD) for a 2.5% bio-aviation fuel blend.
3. Bioethanol Plant in Banyuwangi, East Java
This is a project by Pertamina NRE and PT Sinergi Gula Nusantara (SGN), a subsidiary of PTPN III. The processing plant will produce 30,000 kiloliters per year.
The plant is projected to begin operating in 2026.
18 Downstream Projects of the Prabowo Era
As is known, the government has launched 18 new downstreaming projects under Danantara. These include construction of processing plants for mineral commodities, chemicals, and plantation products. They are currently in the feasibility study stage. Some of the promoted projects include developing dimethyl ether (DME) to substitute imported LPG and building aluminum production.
Total required investment is IDR 618 trillion, expected to absorb 270,000 workers. Project locations will also be outside Java to promote balanced development.
The list of the 18 projects is as follows:
1. Aluminum Smelter Industry (Bauxite) in Mempawah, West Kalimantan; investment IDR 60 trillion; potential 14,700 jobs.
2. DME (coal) Industry in Bulungan, East Kutai, Kota Baru, Muara Enim, PALI, and Banyuasin; investment IDR 164 trillion; potential 34,800 jobs.
3. Asphalt Industry in Buton, Southeast Sulawesi; investment IDR 1.49 trillion; potential 3,450 jobs.
4. Manganese Sulfate Industry in Kupang, East Nusa Tenggara (NTT); investment IDR 3.05 trillion; potential 5,224 jobs.
5. Stainless Steel Slab (Nickel) Industry in the Morowali Industrial Park, Central Sulawesi; investment IDR 38.4 trillion; potential 12,000 jobs.
6. Copper Rod, Wire & Tube (copper cathode) Industry in Gresik, East Java; investment IDR 19.2 trillion; potential 9,700 jobs.
7. Iron & Steel Industry (iron sands) in Sarmi Regency, Papua; investment IDR 19 trillion; potential 18,000 jobs.
8. Chemical Grade Alumina (Bauxite) Industry in Kendawangan, West Kalimantan; investment IDR 17.3 trillion; potential 7,100 jobs.
9. Oleoresin (Nutmeg) Industry in Fakfak Regency, West Papua; investment IDR 1.8 trillion; potential 1,850 jobs.
10. Oleofood (Palm Oil) Industry in the Maloy Batuta Trans Kalimantan (MBTK) SEZ, East Kalimantan; investment IDR 3 trillion; potential 4,800 jobs.
11. Nata de Coco, Medium-Chain Triglycerides (MCT), Coconut Flour, Activated Carbon (Coconut) Industry in the Tenayan Industrial Area, Riau; investment IDR 2.3 trillion; potential 22,100 jobs.
12. Chlor-Alkali Plant (Salt) Industry in Aceh, East Kalimantan, East Java, South Sumatra, Riau, Banten, and NTT; investment IDR 16 trillion; potential 33,000 jobs.
13. Tilapia Fillet Industry in Banten, West Java, Central Java, and East Java; investment IDR 1 trillion; potential 27,600 jobs.
14. Carrageenan (Seaweed) Industry in Kupang, NTT; investment IDR 212 billion; potential 1,700 jobs.
15. Oil Refineries in Lhokseumawe, Sibolga, Natuna, Cilegon, Sukabumi, Semarang, Surabaya, Sampang, Pontianak, Badung, Bima, Ende, Makassar, Donggala, Bitung, Ambon, North Halmahera, and Fakfak; investment IDR 160 trillion; potential 44,000 jobs.
16. Oil Storage Tanks in Lhokseumawe, Sibolga, Natuna, Cilegon, Sukabumi, Semarang, Surabaya, Sampang, Pontianak, Badung, Bima, Ende, Makassar, Donggala, Bitung, Ambon, North Halmahera, and Fakfak; investment IDR 72 trillion; potential 6,960 jobs.
17. Integrated Solar Module (Bauxite and Silica) Industry in the Batang Industrial Estate, Central Java; investment IDR 24 trillion; potential 19,500 jobs.
18. Bio-aviation Fuel Industry (Used Cooking Oil) in KBN Marunda, the Cikarang Industrial Area, and the Karawang Industrial Area; investment IDR 16 trillion; potential 10,152 jobs.
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