Prabowo to Launch $45 Billion in Downstream Projects, Groundbreaking Set for June
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JAKARTA, investortrust.id — President Prabowo Subianto is moving forward with 18 strategic downstream industrial projects valued at nearly $45 billion, with physical groundbreaking scheduled to begin in June 2025, Minister of Energy and Mineral Resources Bahlil Lahadalia said on Friday.
The announcement followed a closed-door meeting at the Merdeka Palace in Jakarta, where Prabowo met with cabinet members and the downstream task force to finalize execution plans.
“These investments—totaling close to $45 billion—are ready for implementation,” Bahlil said in a press briefing. “The discussions have been thorough. This is a joint initiative between the task force, the Ministry of Investment, and several technical ministries.”
The priority projects span a wide array of strategic sectors including nickel and bauxite processing, refinery development, storage infrastructure, and industrial initiatives in fisheries, agriculture, plantation, and forestry.
A major highlight is the development of a domestic battery ecosystem for electric vehicles, with a new emphasis on electric motorbikes—seen as a critical move to reduce the country’s reliance on fossil fuels.
“Currently, our role in the battery industry is minor. We intend to reverse that and take majority control,” Bahlil stated. “Motorcycles dominate our streets—about 140 million units—and we aim to substitute fuel usage through electric transition.”
Much of the financing is expected to come from BPI Danantara Indonesia, the country's newly formed sovereign wealth fund. Prabowo has mandated that state ownership remains the majority in these ventures.
“This is a merah putih project—red and white,” Bahlil emphasized, invoking the national flag. “President Prabowo’s directive is clear: we must ensure majority control stays with the state.”
The initiative is part of Prabowo’s broader strategy to assert greater domestic control over critical resources and move Indonesia up the global industrial value chain.