Jakarta. Indonesia's sovereign wealth fund, Danantara, is accelerating 26 downstream industrial projects worth a combined Rp 225 trillion ($12.5 billion) that are expected to create nearly 38,000 jobs while expanding domestic processing of the country's natural resources, a senior executive said on Monday.

The projects span a range of strategic industries, including aluminum, stainless steel and copper smelters, as well as renewable aviation fuel, bioethanol, palm oil processing, coconut processing, and integrated poultry farming.

“The downstream industrialization program will not only generate investment but also create jobs, stimulate regional economies, and ensure that more value added from Indonesia's natural resources is retained domestically,” Danantara Chief Operating Officer Dony Oskaria said in Jakarta.

The first phase of the program, launched on Feb. 6, covered six projects across 13 locations with a total investment of Rp 109 trillion and is expected to generate 11,456 jobs.

A second groundbreaking phase followed on April 29, comprising 10 priority projects at 13 locations with an investment of Rp 116 trillion and projected employment of 26,377 workers.

Dony said the success of Indonesia's downstream industrialization strategy should be measured not only by the amount of capital invested but also by its broader economic and social impact.

“Downstream industrialization must deliver tangible benefits to the national economy  --  not only through investment, but also through its impact on communities,” he said.

The projects are part of the government's broader strategy to increase domestic value-added processing, reduce reliance on raw commodity exports, and strengthen Indonesia's industrial base through investment in strategic sectors.