Jakarta, INTI - Danantara Indonesia Chief Executive Officer Rosan Roeslani stated that the second phase of downstream industrialization will strengthen Indonesia’s national energy security during the groundbreaking ceremony for 13 National Downstream Projects Phase II at Pertamina Patra Niaga Refinery Unit IV Cilacap, attended by President Prabowo Subianto.
Simultaneous Groundbreaking Across 13 Locations
Rosan explained that the program is a continuation of the first phase launched on February 6, 2026, now expanded with broader project coverage.
He stated, “This program represents the second phase, following the first phase previously implemented as part of the mandate entrusted to us.”
The groundbreaking ceremonies were conducted simultaneously across 13 locations to accelerate the development of value-added industries in various strategic sectors.
Several projects were inaugurated directly by the President, while others were launched virtually through video conference.
The second phase follows the first phase, which covered 11 project locations, and now introduces 13 new projects consisting of five energy-sector projects, five mineral-sector projects, and three supporting industrial and technology projects.
All projects have undergone extensive studies and long-term planning to ensure swift implementation.
Reducing Imports and Creating Employment
The second phase of downstream industrialization is projected to generate around 600,000 new jobs across multiple industrial sectors.
One of the major initiatives involves converting coal into dimethyl ether (DME) as an alternative to imported LPG.
Rosan emphasized, “Around 80 percent of our LPG demand still relies on imports. Through downstream industrialization, we aim to reduce that dependency.”
The government expects the program to cut imports by approximately US$3.4 billion annually while improving the competitiveness of domestic industries.
The downstream projects involve collaboration among state-owned enterprises such as Pertamina, MIND ID, and Krakatau Steel through a cross-sector partnership model.
Rosan noted, “This is a collaborative effort among SOEs, and we are accelerating projects that had previously been planned.”
The government is also preparing the third phase of downstream industrialization, which is expected to include around six additional projects with investment potential reaching US$10 billion, or approximately Rp170 trillion.
He added, “Moving forward, we will also expand into sectors such as agriculture, fisheries, including commodities like tilapia and seaweed.”
All downstream programs are being implemented under strong governance principles and comprehensive planning to ensure optimal execution.
The government remains optimistic that downstream industrialization will become a key pillar in strengthening energy security, reducing imports, and enhancing the competitiveness of Indonesia’s national industries.
Conclusion
Indonesia’s Phase II downstream industrialization program marks a major step toward strengthening national energy security, reducing import dependence, creating jobs, and accelerating industrial competitiveness through cross-sector collaboration.
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