Indonesia to Advance Downstreaming Projects

Major Industrial Initiatives

The Indonesian government is poised to make significant progress in its downstreaming efforts with the upcoming groundbreaking of 6 major projects in January 2026 ¹

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Source 2

https://finance.detik.com/industri/d-8264693/rosan-ungkap-6-proyek-hilirisasi-mulai-dibangun-januari

. Danantara CEO Rosan Roeslani revealed that these projects represent the first phase of a comprehensive industrialization plan.

Key Projects and Sectors

The initial phase includes diverse projects such as:

• Smelter Grade Alumina Refinery (SGAR): Advancing aluminum processing capabilities
• Bioavtur Refinery: Developing sustainable aviation fuel infrastructure in Cilacap
• Bioethanol Development: Establishing bioethanol production facilities in Banyuwangi

These projects are part of a broader strategy involving 18 initiatives across multiple sectors, including agriculture and energy ¹

. The selection of projects for the initial phase was based on readiness for implementation.

Implementation Timeline

Rosan Roeslani emphasized that the projects to be launched in January are those that are fully prepared for execution. The phased approach indicates a strategic rollout of downstreaming initiatives, with the first phase focusing on projects that can be operationalized quickly.

Significance and Impact

This downstreaming push is expected to have multiple benefits for Indonesia's economy, including job creation, value-added industrial growth, and reduced dependence on raw material exports. The projects will contribute to the country's economic development by creating new industries and enhancing existing ones.