Recently, Indonesia's sovereign wealth fund, Danatara, announced the launch of six natural resource processing projects with a total investment of $70 billion. These projects are part of the 18 priority projects planned by the Indonesian government for 2026, aiming to enhance resource value-added and optimize the industrial structure.
Danatara CEO Rosan Roeslani stated, "Indonesia emphasizes accelerating the advancement of downstream industry projects that can directly benefit people's livelihoods." He introduced that the launched projects cover multiple fields including energy, minerals, and agriculture. They include Pertamina's green energy refinery project, alumina and aluminum smelting plants, an ethanol factory, a palm oil-blended aviation fuel plant, and integrated livestock farming facilities.
In the energy sector, Pertamina's refinery in Cilacap, Central Java, produces aviation fuel from used cooking oil. Its current daily production is 3,000 barrels and is expected to increase to 6,000 barrels in the future. This project helps reduce waste emissions while providing a renewable fuel source for air transportation.
Pertamina is also collaborating with a state-owned plantation enterprise to build a bioethanol factory in East Java, with a designed annual production capacity of 30,000 kiloliters. The factory will utilize locally grown resources to produce ethanol, supplement fuel supply, and promote the integrated development of agriculture and the energy industry.
Regarding mineral processing, the alumina and aluminum smelting plant project aims to enhance local bauxite processing capacity, reduce reliance on raw material exports, and increase product value-added. The integrated livestock farming facilities focus on large-scale development in the agricultural sector, supporting the stability of the food supply chain.
Roeslani stated that these natural resource processing projects will drive the synergistic development of related industrial chains, create job opportunities, and promote balanced regional economic growth. He emphasized that by accelerating the construction of downstream industries, Indonesia hopes to secure a more favorable position in the global resource supply chain while providing substantial support for improving domestic livelihoods.
The launch of these projects is a significant measure for Indonesia in promoting economic transformation. In the future, with the implementation of more downstream industry projects, the country's natural resource processing capacity is expected to further improve, laying the foundation for sustainable development.
