Govt to Begin Downstream Projects in Late January 2026

RRI.CO.ID, Jakarta - The Indonesian government is set to break ground on six downstream projects at the end of January 2026, marking a major step in its efforts to strengthen the real sector and reinforce the country’s economic fundamentals.

Minister of State Secretary Prasetyo Hadi confirmed that West Kalimantan will be among the provinces hosting the projects. “There are still around 12 more projects that can begin in February, and by March at the latest, all of them will have started,” Prasetyo said at the Presidential Palace Complex in Jakarta on Thursday, January 22, 2026, as quoted by Antara.

The downstream initiative is part of a broader national strategy to optimize Indonesia’s natural resources and drive sustainable economic growth.

Separately, Danantara Indonesia, the state agency overseeing strategic investment projects, announced that it will begin groundbreaking activities in February 2026.

Danantara CEO Rosan Roeslani said the projects include bauxite and aluminum processing in Balikpapan, biofuel development, refinery construction, and poultry farming across five locations.

“There will be bauxite and aluminum in Balikpapan, then biofuel, and also a refinery. In addition, poultry farming will be developed in five different areas,” Rosan said after the “Semangat Awal Tahun 2026” (Spirit of Early 2026) event in Jakarta on Wednesday, January 14.

Rosan also highlighted the coal gasification project aimed at producing dimethyl ether (DME), which is expected to begin construction in February 2026.

Through these downstream projects, the government seeks to add value to Indonesia’s abundant natural resources while ensuring long-term economic resilience through strategic investment. ***