Indonesia’s sovereign wealth fund, Danantara Indonesia, launched six major projects in the natural resources processing sector valued at US$7 billion on 06/02.

These initiatives are part of the government’s 18 priority projects in this sector planned for 2026, with a total investment of 618 trillion rupiah (S$46.6 billion).

CEO Rosan Roeslani said President Prabowo emphasised accelerating downstream projects that directly benefit the public.

Green Energy and Bioethanol Plants Among Major Investments

The launched projects include a green energy refinery by state-owned Pertamina, which converts used cooking oil into aviation fuel.

The Cilacap, Central Java refinery currently produces 3,000 barrels per day and aims to increase output to 6,000 barrels per day, according to Pertamina director Emma Sri Martini.

Additionally, a bioethanol plant in East Java, developed jointly by Pertamina and state-owned plantation company Perkebunan Nusantara, is expected to produce 30,000 kilolitres per year.

Alumina, Aluminum, and Poultry Production Facilities in Focus

Other projects comprise the construction of alumina and aluminum smelters in West Kalimantan, with planned production of one million tonnes and 600,000 tonnes per year, respectively.

Danantara also plans to develop integrated poultry facilities across 30 locations, targeting annual production of 1.5 million tonnes of chicken meat and one tonne of eggs.

Accelerating Downstream Projects to Benefit the Public

The sovereign wealth fund’s involvement follows recent volatility in Indonesia’s stock market.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government, following President Prabowo’s instructions, will implement structural reforms to improve transparency and boost market liquidity.

PHOTO: KONTAN/BAIHAKI

This article was created with AI assistance.

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