Jakarta, INTI - Minister of Investment and Downstreaming Rosan Roeslani said that several downstreaming projects are set to enter the construction phase, with groundbreaking ceremonies scheduled for late January 2026. The projects span multiple sectors, including minerals, energy, and agro-industry.
Rosan noted that one of the key initiatives is the development of an aluminum smelter industry in Mempawah, West Kalimantan, with a total investment value of approximately US$2.4 billion, or around Rp 40 trillion.
In addition, the government plans to build a bauxite-based Smelter Grade Alumina (SGA) facility in Mempawah, requiring an estimated investment of about US$890 million, or nearly Rp 15 trillion.
Expansion into Bioenergy and Agro-Industry Facilities
The projects also include the construction of a bioavtur production facility in Cilacap, Central Java, with an investment value of up to US$1.1 billion. In addition, the government is preparing the development of a bioethanol production facility, which is expected to require an investment of around US$80 million.
“At the end of January, there will be the development of an alumina-to-aluminum smelter worth US$2.4 billion in Mempawah, followed by a bauxite-based smelter grade alumina facility, as well as a bioactive production facility,” Rosan told reporters at the Presidential Palace in Jakarta on Thursday, January 8, 2026.
The head of the Daya Anagata Nusantara Investment Management Agency (Danantara) said the government is developing an integrated coconut processing facility in Morowali, Central Sulawesi, with an estimated investment of around US$100 million.
Rosan explained that the project is already under way and forms part of the government’s broader downstreaming strategy to enhance the domestic value added of plantation commodities. He added that the government is also working on five poultry farming facilities across 12 planned locations
“For the bioethanol project, I forgot the location. Then there are five poultry farming facilities currently being developed out of the planned 12,” he said.
Broader Rollout of Downstreaming Projects Through Early 2026
The Presidential Palace previously announced that six downstreaming projects are scheduled to begin construction through groundbreaking ceremonies in January 2026. One of these is a coal gasification project to produce dimethyl ether (DME), aimed at reducing Indonesia’s reliance on imported LPG.
Minister of State Secretary Prasetyo Hadi explained that additional groundbreaking ceremonies are also scheduled to take place in February and March 2026. As a result, he said a total of 18 downstreaming projects are set to begin construction.
“There are several programs related to energy, including the development of DME at multiple locations. There are also programs in the agricultural sector,” Prasetyo Hadi said during a press conference on the sidelines of the Red and White Cabinet retreat at Padepokan Garuda Yaksa in Hambalang, West Java, on Tuesday, January 6, 2026.
Conclusion
The launch of multiple downstreaming projects in early 2026 underscores the government’s push to strengthen domestic industries and increase value added across key sectors such as minerals, energy, agriculture, and biofuels. With investments spanning smelters, renewable energy facilities, and agro-industry developments, the initiatives are expected to support economic growth, reduce import dependence, and reinforce Indonesia’s long-term industrial transformation agenda.
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