Cilacap, Central Java. President Prabowo Subianto on Wednesday launched 13 downstream industrial projects worth about Rp116 trillion ($6.68 billion), as Indonesia steps up efforts to process more of its natural resources domestically and reduce reliance on raw commodity exports.

The groundbreaking ceremony in Cilacap marked the second phase of the government’s national downstream industrialization program, an economic strategy aimed at capturing more value from the country’s vast reserves of minerals, energy, and agricultural commodities.

“Downstream industrialization is the only path for us to become more prosperous,” Prabowo said in a speech. “We do not want to simply export raw materials. We want to process them here so the added value is enjoyed by the Indonesian people.”

The 13 projects span three key sectors. In energy, five initiatives include gasoline refinery facilities in Cilacap and Dumai, fuel storage infrastructure in eastern Indonesia, and a coal-to-dimethyl ether (DME) plant in South Sumatra aimed at reducing reliance on imported liquefied petroleum gas.

Another five projects fall under the minerals sector, including nickel-based stainless steel manufacturing in Morowali, iron ore processing into carbon steel slabs in Cilegon, and a copper and gold downstream facility in Gresik. The government has also advanced an asphalt production ecosystem in Buton, tapping domestic resources to cut imports.

The remaining three projects focus on agriculture, covering palm oil processing into biodiesel and oleochemicals in North Sumatra, as well as nutmeg and coconut-based processing facilities in Maluku.

The latest rollout follows an earlier batch of 13 projects and signals further expansion. Prabowo said the government plans to add six more downstream projects in the near term.

Indonesia’s push for downstreaming has been a cornerstone of its industrial policy in recent years, particularly in the mining sector, where export bans on raw materials such as nickel have attracted billions of dollars in investment into smelting and processing facilities.

Prabowo reiterated that the broader goal is to ensure Indonesia retains greater control over its natural wealth and channels the benefits back into the domestic economy.

“I want Indonesia’s resources to remain in the hands of the Indonesian people and to be enjoyed by them,” he said, urging concession holders and policymakers to prioritize national interests and avoid corruption.

The president added that savings from budget efficiency measures, anti-corruption efforts, and higher value-added production would be redirected into social programs, including the government’s free nutritious meals initiative and village-level cooperative schemes.

The downstream industrialization drive comes as Southeast Asia’s largest economy seeks to strengthen its industrial base, improve trade balances, and create jobs by moving up the value chain. It also aligns with broader ambitions to position Indonesia as a key player in global supply chains for energy, metals, and processed commodities.

List of 13 Downstream Projects, Phase II (April 29, 2026):

• Gasoline refinery facility in Cilacap
• Gasoline refinery facility in Dumai
• Operational fuel storage tanks in Palaran, East Kalimantan
• Operational fuel storage tanks in Biak, Papua
• Operational fuel storage tanks in Maumere, East Nusa Tenggara
• Coal-to-Dimethyl Ether (DME) processing plant in Tanjung Enim, South Sumatra
• Nickel-based stainless steel manufacturing in Morowali, Central Sulawesi
• Carbon steel slab production from local iron ore in Cilegon, Banten
• Buton asphalt ecosystem and production facilities in Buton, Southeast Sulawesi
• Copper and gold downstream processing facility in Gresik, East Java
• Palm oil downstream processing into oleofood and biodiesel in Sei Mangkei, North Sumatra
• Nutmeg processing facility into oleoresin in Central Maluku, Maluku
• Integrated coconut-based processing facility for MCT oil, flour, and activated carbon in Central Maluku, Maluku

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